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Updated: 5 hours 8 min ago

More euro-tragedy

17 hours 13 min ago
Despite the uncertainties ahead of the Greek general election, the European Central Bank (ECB) went ahead and announced quantitative easing (QE) of €60bn per month from March to at least September 2016.

What makes this interesting is the mounting evidence that QE does not bring about economic recovery. Even Jaime Caruana, General Manager of the Bank for International Settlements and who is the central bankers' central banker, has publicly expressed deep reservations about QE. However, the ECB ploughs on regardless.

The Keynesians at the ECB are unclear in their thinking. They are unable to answer Caruana's points, dismissing non-Keynesian economic theory as "religion", and they sweep aside the empirical evidence of Keynesian policy failures. Instead they are panicking at the spectre of too little price inflation, the continuing fall in Eurozone bank lending and now falling commodity prices. To them, it is a situation that can only be resolved by monetary stimulation of aggregate demand applied through increased government deficit spending.

This is behind the supposed solution of the ECB's QE, most of which will involve national central banks in the euro-system propping up their own national governments' finances.

The increased socialisation of the weaker Eurozone economies, especially those of France, Greece, Italy, Spain and Portugal, will inevitably lead to unnecessary economic destruction. QE always transfers wealth from savers to financial speculators and other early receivers of the new money. Somehow, the impoverishment of the working and saving masses for the benefit of the central bankers' chosen few is meant to be good for the economy.

Commercial banks will be corralled into risk-free financing of their governments instead of lending to private enterprise. This is inevitable so long as the Single Supervisory Mechanism (the pan-European banking regulator) with a missionary zeal is discouraging banks from lending to anyone other than governments and government agencies. So the only benefit to employment will come from make-work programmes. Otherwise unemployment will inevitably increase as the states' shares of GDP grow at the expense of their private sectors as the money and bank credit shifts from the former to the latter: this is the unequivocal lesson of history.

It may be that by passing government financing to the national central banks, the newly-elected Greek government can be bought off. It will be hard for this rebelling government to turn down free money, however angry it may be about austerity. But this is surely not justification for a Eurozone-wide monetary policy. While the Greek government might find it easier to appease its voters, courtesy of easy money through the Bank of Greece, hard-money Germans will be horrified. It may be tempting to think that the ECB's QE relieves Germany from much of the peripheral Eurozone's financing and that Germans are therefore less likely to oppose the ECB's QE. Not so, because the ECB is merely the visible head of a wider euro-system, which includes the national central banks, through which there are other potential liabilities.

The principal hidden cost to Germany is through the intra-central bank settlement system, TARGET2, which should only show minor imbalances. This was generally true before the banking crisis, but since then substantial amounts have been owed by the weaker southern nations, notably Italy, to the stronger northern countries. Today, the whole of the TARGET2 system is being carried on German and Luxembourg shoulders as creditors for all the rest. Germany's Bundesbank is owed €461bn, a figure that is likely to increase as the debtors' negative balances continue to accumulate.

The currency effect

The immediate consequence of the ECB's QE has been to weaken the euro against the US dollar, and importantly, it has forced the Swiss franc off its peg. The sudden 20% revaluation of the Swiss franc has generated significant losses for financial institutions which were short of the franc and long of the euro, which happens to have been the most important carry-trade in Europe, with many mortgages in Central and Eastern Europe denominated in Swiss francs as well. The Greek election has produced a further problem with a developing depositor run on her banks. Doubtless both the carry-trade and Greek bank problems can be resolved or covered up, but problems such as these are likely to further undermine international confidence in the euro, particularly against the US dollar, forcing the US's Fed to defer yet again the day when it permits interest rates to rise.

This was the background to the Fed's Open Market Committee (FOMC) meeting this week, and the resulting press release can only be described as a holding operation. Statements such as "the Committee judges that it can be patient in beginning to normalise the stance of monetary policy" are indicative of fence-sitting or lack of commitment either way. It is however clear that despite the official line, the US economy is far from "expanding at a solid pace" (FOMC's words) and external events are not helping either. For proof of that you need look no further than the slow-down of America's overseas manufacturing and production facility: China.

The consequences for gold

Until now, central banks have restricted monetary policy to domestic economic management; this is now evolving into the more dangerous stage of internationalisation through competitive devaluations. We now have two major currencies, the yen and the euro, whose central banks are set to weaken them further against the US dollar. Sterling, being tied through trade with the euro, should by default weaken as well. To these we can add most of the lesser currencies, which have already fallen against the dollar and may continue to do so. The Fed's 2% inflation target will become more remote as a consequence, and this is bound to defer the end of zero interest rate policy. So from all points of view competitive devaluations should be good for gold prices.

This is so far the case, with gold starting to rise against all major currencies, including the US dollar, with the price above 200-day and 50-day moving averages in bullish formation. To date from its lows gold has risen by up to 13% against the USD, 18% against the pound, 30% against the euro, and 32% against the yen. The rise against weaker emerging market currencies is correspondingly greater, fully justifying Asian caution about their government currencies as stores of value.

We know that Asian demand for bullion has absorbed all mine production, scrap and net selling of investment gold from advanced economies for at least the last two years. Indeed, the bear market in gold has been a process of redistribution from weak western into stronger eastern hands. So if there is a revival in physical demand from the public in these advanced economies it is hard to see how it can be satisfied at anything like current prices, with physical bullion now in firm hands.

The gold price is an early warning of future monetary and currency troubles, and it is now becoming apparent how they may transpire. The ECB move to give easy money to profligate Eurozone politicians is likely to have important ramifications well beyond Europe, and together with parallel actions by the Bank of Japan, can now be expected to increase demand for physical gold in the advanced economies once more.

Market Report: Consolidating gains

17 hours 42 min ago
Gold and silver prices consolidated recent gains this week, both having become overbought short-term, and they now appear to be building a base before an attempt to convincingly attack higher ground, though yesterday's price reaction was quite sharp.

The recent slightly overbought situation for gold is shown in the chart below, which is of the Comex Managed Money category net position:

The dotted line is the average net long position (since 2006), so we can see that net longs are slightly higher than that average. This tells us that fund and hedge fund managers have undergone a huge shift in sentiment over the last two months.

Silver tells a similar story:

Again, the dotted line is the long-term average net position, indicating that silver's strong rally needs some consolidating. Any pause in the news flow is an opportunity for the bullion banks to mark the price down in the hope they can close some of their short positions, and that is what happened yesterday, with gold driven down over 2% and silver by nearly 6%.

Last time the Managed Money category was as bullish was in July last year, when gold ran up to $1330 and silver to $21. Gold and silver then fell back to new lows, so will this happen again?

Time will tell, and there is no doubt some of the large trading banks have a vested interest in seeing lower prices. But in mid-2014 markets were coming to terms with the end of the Fed's quantitative easing programme; this time we have the ECB's QE about to be implemented.

So background monetary fundamentals for gold and silver appear to be improving, with the ECB having announced this month quantitative easing of €60bn per month from March onwards. Ahead of this announcement the Swiss National Bank decided to abandon its peg to the euro, injecting a high degree of currency instability into European markets. These developments are more likely than not to produce European buyers for gold over time, and it is worth noting that, priced in euros, gold is already some 25-30% up from its recent lows.

Also in Europe there have been significant losses from the Swiss franc reaction, and the Greek banking system is suffering depositor withdrawals. It would, however, be wrong to expect too much impact on gold and silver from these events, until there is firmer evidence they could be systemically destabilising.

The bigger news is currencies. With both the Bank of Japan and the ECB determined to weaken their currencies against the US dollar, we have the makings of a return to deliberate devaluations, which is more likely to encourage Japanese and European buyers for bullion.

In other news, the Shanghai Gold Exchange has been delivering large quantities of gold into the wholesale markets, with a further 70.63 tonnes last week, making a total of 201.67 tonnes for the first three weeks of January. Note how rising prices have not deterred Chinese demand.

Next week

Monday

Eurozone: Manufacturing PMI.
UK: CIPS/Markit Manufacturing PMI.
US: Core PCE Price Index, Personal Income, Personal Spending, Manufacturing PMI, Construction Spending, ISM Manufacturing.

Tuesday

UK: CIPS/Markit Construction PMI.
Eurozone: PPI.
US: Factory Orders, IBD Consumer Optimism, Vehicle Sales.

Wednesday

Eurozone: Composite PMI, Services PMI, Retail Trade.
UK:CIPS/Markit Services PMI.
US: ADP Employment Survey, ISM Non-Manufacturing

Thursday

UK: Halifax House Price Index, BoE MPC Base Rate.
US: Initial Claims, Non-Farm Productivity, Trade Balance, Unit Labour Costs.

Friday

Japan: Leading Indicator.
UK: Visible Trade Balance.
US: Non-Farm Payrolls, Private payrolls, Unemployment, Consumer Credit.

Dealing Desk: Silver slumps and gold glistens

Thu, 01/29/2015 - 13:44
It was a quieter week for GoldMoney customers ahead of the Federal Reserve Open Market Committee (FOMC) meeting on Wednesday, although activity increased slightly after with a marked change in direction with regard to silver.

Silver loses its physical shine
After several weeks of buying from the online precious metals dealer's customers, silver has lost its shine according to Dealing Manager at GoldMoney, Kelly-Ann Kearsey, 'Customers have been actively tracking the markets this week as we've seen silver selling ahead of the FOMC meeting. Obviously silver is an industrial metal and prone to more volatility, so our customers have decided that now is the time to sell some of the white metal, and instead we've seen a return to gold fever.'

The graph below shows the complete turnaround in gold and silver buying interest from GoldMoney's customers compared to last week:

Gold glistens again
'We saw a big order of gold into our Swiss vaults, for the second week in a row.' Says Kelly-Ann, this is again a change from the recent trend of selling out of the western vaults and into our eastern ones, particularly Singapore. That's not to say that Singapore wasn't a big recipient, it was, with UK vaults seeing the selling. Gold prices have dropped a little since the FOMC meeting as gold's inflationary hedge attraction declined. However, following the weaker than expected US Durable Goods orders, and amid continued fears about Europe and the Greek economy, we're seeing buying interest from those wishing to protect their portfolios against potentially more price sensitive investments.

Where to Next?
'There have definitely been more buyers than sellers this week despite the quieter trading, and there are clearly some concerns around the industrial precious metals. Platinum has remained below gold's price. The stronger US Dollar and lower oil prices are countering gold's appeal generally, but while economic robustness remains in question, it will still see continued interest from those seeking a safe haven for their money.'

Week on week price performances
29/01/15 16:00. Gold down 2.7% to $1,264.06, Silver fell 6.1% to $17.14, Platinum lost 5.3% to $1,212.75 but Palladium increased 1.0% to $773.60.

Ends

NOTES TO EDITOR
For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.


Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. GoldMoney partners with Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.

GoldMoney currently has over 20,000 customers worldwide and holds over $1billion of precious metals in its partner vaults.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.


Further information:
Visit: Goldmoney.com or view our video online

Schools and nurseries line up for the Easter bunny

Thu, 01/29/2015 - 06:21
For the third year, GoldMoney are sponsoring the Grace Crocker Bunny Run. A team of runners dressed as rabbits, will visit schools and nurseries across the island to deliver chocolate eggs at Easter in aid of the charity.

The run is not only a fun way for children to celebrate Easter, but also raises funds and awareness of the Grace Crocker Family Support Foundation. It has already given £6,750 to the charity, and this year looks like being the biggest yet with entertainment support from registered sports coaching and playcare club, Sports Bugs.

Organisers Rachel and Pete Wright say 16 schools and nurseries are signed up, but are calling for more to come forward and take part in this island wide event. Pete is Chief Financial Officer at GoldMoney, 'Each year the bunny run has been getting bigger. Last year we had our bunnies judging Easter egg decorating and Easter bonnet competitions, we held mini sports days with egg and spoon races, with the help of Sports Bugs, and there were lots of other Easter themed games at the different schools and nurseries. We can organise as much or as little as each school wants, all we ask is that parents donate at least £1 towards the Grace Crocker charity and in return their child will receive a chocolate egg and have lots of fun.'

Grace Crocker was born in Jersey with hypo-plastic left heart syndrome and had open heart surgery at just five days old. Grace's family had to move to Southampton for three months to be with her, but sadly Grace died aged just 11 weeks. The charity aims to help other families who have to go off island when a child is seriously ill, and gives financial and emotional assistance.

Geoff Turk, Chief Executive Officer, GoldMoney said the company is pleased to be again supporting the Bunny run: 'The Grace Crocker foundation is a very worthwhile charity, which any parent will be able to relate to. Pete and Rachel have come up with a fantastic way for children to enjoy Easter and raise funds for the charity, and GoldMoney is delighted to be able to once again support them. It would be lovely to see every school and nursery in Jersey getting in touch and taking up this wonderful opportunity.'

Sports Bugs will be on hand to help organise games and activities at each school/nursery. The experienced coaching team at the local sports development company, can also loan equipment for sports games such as the egg and spoon race.

If a school or nursery would like a visit from the Bunny you can contact Pete at: r_r.wright@yahoo.co.uk, or via the Facebook page: The Grace Crocker Bunny Run.

Further information about the charity and donations can be made through their website: www.gracecrocker.org

Ends

NOTES TO EDITOR


For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.

Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada.

GoldMoney partners with Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.

GoldMoney currently has over 20,000 customers worldwide and holds over $1billion of precious metals in its partner vaults.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.


Further information:
Visit: Goldmoney.com or view our video online

Is The Gold Price About To Repeat One Of Its Greatest Upside Moves In History

Mon, 01/26/2015 - 11:24
James Turk spoke to King World News, ahead of this Wednesday's FOMC announcement, about why gold is about to repeat one of its greatest upside moves in history. He also included a fantastic 5-decade chart to go along with his powerful interview. James Turk: "We should not be too surprised that gold and silver have begun the week with some downward price pressure, Eric. The Greek election results are now known, so there has been some "buy the rumor, sell the news" pressure from that.   Read the full interview here.

 

Dealing Desk: Gold’s star rises, eclipsing platinum’s shine

Thu, 01/22/2015 - 12:43
It was a well anticipated rise for the gold price following confirmation from the European Central Bank that it is to start quantative easing, and the increase in interest has been reflected at GoldMoney.

Double volume

Dealing Manager at GoldMoney, Kelly-Ann Kearsey said, 'Volumes more than doubled this week, compared to last, registering a 119% increase. It's definitely in favour of the buyers with gold returning to the top slot knocking the recent favourite, silver, into runner-up position - although its still receiving plenty of interest too. The increase in buying came after the Swiss National Bank's decision, last week, to end its cap against the Euro. We have also seen more interest this week for our Swiss vault along with the more usual flow into the east and Singapore.'

Platinum struggles

The other phenomenon on the precious metals markets this week has been the gold price rising above its rarer cousin, platinum. 'The lower platinum price in comparison to gold's reflects platinum's industrial use and gold's safe haven status. With economic uncertainties once again rumbling round the world the industrial metals are losing favour although silver's relatively under-priced status of the past few weeks has seen it gain the most in percentage terms this week.' said Kelly-Ann. 'The last time we saw platinum fall below gold was in April of last year. We've also seen a large sell order on palladium this week'.

Where to next?

There is a general feeling that more faith is going back into gold according to Kelly-Ann, 'The yellow metal's rise beyond $1300 has boosted confidence in the metal's direction and the next week will give further impetus with a swathe of figures coming out of the US and the Federal Open Market Committee meeting. A clearer indication of where the US economy is heading could give further drive to gold buying as a safe haven and asset protector.'

Week on week price performances
22/01/15 16:00. Gold up 3.1% to $1,299.06, Silver increased 7.0% to $18.25, Platinum gained 2.0% to $1,280.45 but Palladium decreased 0.6% to $766.25.

NOTES TO EDITOR
For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.

Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. GoldMoney partners with Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.

GoldMoney currently has over 20,000 customers worldwide and holds over $1billion of precious metals in its partner vaults.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Further information:
Visit: Goldmoney.com or view our video online

Dealing Desk: Gold’s star rises, eclipsing platinum’s shine

Thu, 01/22/2015 - 12:43
It was a well anticipated rise for the gold price following confirmation from the European Central Bank that it is to start quantative easing, and the increase in interest has been reflected at online precious metals dealer, GoldMoney.

Double volume

Dealing Manager at GoldMoney, Kelly-Ann Kearsey said, 'Volumes more than doubled this week, compared to last, registering a 119% increase. It's definitely in favour of the buyers with gold returning to the top slot knocking the recent favourite, silver, into runner-up position - although its still receiving plenty of interest too. The increase in buying came after the Swiss National Bank's decision, last week, to end its cap against the Euro. We have also seen more interest this week for our Swiss vault along with the more usual flow into the east and Singapore.'

Platinum struggles

The other phenomenon on the precious metals markets this week has been the gold price rising above its rarer cousin, platinum. 'The lower platinum price in comparison to gold's reflects platinum's industrial use and gold's safe haven status. With economic uncertainties once again rumbling round the world the industrial metals are losing favour although silver's relatively under-priced status of the past few weeks has seen it gain the most in percentage terms this week.' said Kelly-Ann. 'The last time we saw platinum fall below gold was in April of last year. We've also seen a large sell order on palladium this week'.

Where to next?

There is a general feeling that more faith is going back into gold according to Kelly-Ann, 'The yellow metal's rise beyond $1300 has boosted confidence in the metal's direction and the next week will give further impetus with a swathe of figures coming out of the US and the Federal Open Market Committee meeting. A clearer indication of where the US economy is heading could give further drive to gold buying as a safe haven and asset protector.'

Week on week price performances
22/01/15 16:00. Gold up 3.1% to $1,299.06, Silver increased 7.0% to $18.25, Platinum gained 2.0% to $1,280.45 but Palladium decreased 0.6% to $766.25.

NOTES TO EDITOR
For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.

Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. GoldMoney partners with Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.

GoldMoney currently has over 20,000 customers worldwide and holds over $1billion of precious metals in its partner vaults.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Further information:
Visit: Goldmoney.com or view our video online

James Turk: Earth-Shaking Swiss Move Creates Enormous Chaos As London Gold Pool II Falters

Mon, 01/19/2015 - 07:22
James Turk spoke to King World News about the earth-shaking Swiss move and why it has created such enormous fallout.

"The announcement by the Swiss National Bank was an earth-shaking event as we have seen, with markets around the word roiled by it. We are still seeing the aftermath as various players announce the losses they have incurred, and there are still no doubt many unintended economic consequences that have yet to appear."

James goes on to discuss the fixing of the Swiss Franc, price fixing, the markets and the 'London gold pool'.

Read the full interview at King World News

 

Market Report: Flights to Quality

Fri, 01/16/2015 - 06:58
It is pleasing to see precious metals in favour as 2015 gets underway in earnest.

Whilst 'quality' might be a subjective term, it seems to have been applied, in my opinion quite rightly, to gold, silver, platinum and palladium by investors looking to protect themselves from a start-of-the-year volatility storm in other asset classes. In the wider commodity world, oil and copper prices are still languishing whilst precious metals have shown their value to investors as a stand-alone and increasingly non-correlated asset class. I think this should be considered as bullish.

as at 13:00 GMT 2015-01-15

Further cheer should be taken from the fact that precious metals are finding support even against a deflationary landscape and weak global growth forecasts. I recognise that some of the positive price action can be attributed to a fall in the US Dollar, following a market revision to the timetable for US rate rises, but maintain that the shine of gold, silver, platinum and palladium is being recognised as an effective solution for portfolios.

As part of the 'risk off trading' this week, demand for government debt has seen yields reaching record lows and going below zero in some instances: investors paying more than par for 5-year bonds issued by Switzerland, Finland, Japan and Germany, for example.

All of this week's activity has re-enforced the notion that precious metals, with their unique properties as an asset class, should be considered by investors looking to diversify their portfolios.

Dealing Desk: Gold’s safe haven status brings back its shine

Thu, 01/15/2015 - 13:05
It's been a busy week for GoldMoney customers, but despite today's Swiss National Bank (SNB) announcement, they're still preferring silver to the yellow metal.

Over the past week, Roland Khounlivong said in terms of value the online precious metals' trader has seen an outflow of gold from Switzerland and the UK with the Brinks Canada vault and Brinks and Malca-Amit in Singapore being the main beneficiaries where there is buying. 'Interestingly our buyer to seller ratio is still showing more buyers than sellers overall, over twice as many in fact. Silver has been the main attraction with gold suffering despite its rising price. Today's announcement, that the Swiss National Bank is to end its cap for the Franc against the Euro and cut its deposit rate to minus 0.75%, sent gold prices rising and investors rushing to gold for its safe haven qualities, but still failed to change the buying patterns of our GoldMoney customers.

'These are interesting times for gold as in the past falling oil prices and inflation, and a rising dollar has led to falling gold prices, but economic stability fears are again putting the shine back into the metal. The first economic figures to come out of the US have been disappointing, with December retail sales lower than expected and jobless claims starting to head in the wrong direction, and this plus Swiss Franc volatility could continue to push gold forward as a safe haven option for investors.

'Next week we may see more along the same lines as the European Central Bank releases its monthly monetary policy statement on Thursday amid fears over the stability of the Euro and the potential exit of Greece. Monday is likely to be quieter with the US closed for a public holiday, but Tuesday's Chinese GDP and industrial production figures may give some further direction.'

Week on week performance: 15/01/15 16:00. Gold up 3.9% to $1,259.56, Silver increased 4.0% to $17.06, Platinum gained 3.0% to $1,255.74 but Palladium decreased 2.7% to $770.72.

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney currently has over 20,000 customers worldwide and holds around $1.2billion of precious metals in its partner vaults.

GoldMoney has offices in Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com.

Follow the GoldMoney Dealing desk team on Twitter: @goldmoneynews

The story behind the headlines for gold and silver

Thu, 01/15/2015 - 08:57
Despite what seemed like a challenging year for gold and silver in 2014, analysis of GoldMoney's customers shows an interesting story which has silver as its star actor and a backstory for gold which is hidden behind the main action.

Gold may have slightly fallen from US$1,201.50 from 31st December 2013 to US$1,199.25 on 31st December 2014, but that is only in relation to the dollar. In terms of all the other major world currencies gold actually rose. For example it ended 2013 at GBP 726.99 per ounce, but it ended 2014 at GBP 769.84.

Head of Dealing and Settlements at GoldMoney, Roland Khounlivong said, '2014 was all about the dollar's strength, but that ignores what was going on in the rest of the world's economies. While Britain's performance was fairly positive, the pound still lost ground against gold which continued to act in its safe haven capacity for many people around the world.' The most interesting story of the year, however, is in the technical analysis of silver buying's behaviour. Silver prices fell more than 18% over the year, but GoldMoney's silver under management has barely changed.

Roland said, 'There was some selling waves, but there was also a great deal of tactical buying, with two clear motivational turning points. The first was in June where the price had been steadily dropping since March, customers simply weren't buying silver (net sellers) in the first five months of the year, but as soon as prices hit the $19/oz support level, they started buying on a big scale (net buyers). The buying continued, despite falling prices again, until September. With prices continuing to fall customers stopped buying and waited for a 23% discount on the year's peak, before returning to their buying spree. The buying interest in silver then continued for the rest of the year with silver still looking to be a bargain buy.'

2015 has begun with a positive trend for gold and silver prices amid turmoil in other commodity markets and economic uncertainty in many economies. Roland said it's going to be an interesting year, 'Gold is currently bucking historic trends and going in the opposite direction to oil prices and inflation. Quite simply investors seem to be hedging their bets and adding gold into their portfolio to provide diversification and a safe haven amid further economic uncertainty.'

ends

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.
GoldMoney stores around $1.2 billion of precious metals worldwide for over 20,000 customers.

GoldMoney has offices in Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 70 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com

Follow the GoldMoney Dealing desk team on @goldmoneynews

2015: the year of the slump?

Fri, 01/09/2015 - 06:03
2014 ended with two ominous developments: the strength of the US dollar and a collapse in key commodity prices.

It is tempting to view both events as one, but the continuing fall in oil prices through December reveals they are sequential: first there was a greater preference for dollars compared with other currencies and this still persists, followed by a developing preference for all but the weakest currencies at the expense of raw materials and energy. These are two steps on a path that should logically lead to a global slump.

Dollar strength was the first warning that things were amiss, leading to higher interest rates in many of the emerging economies as their central banks sought to control investment outflows. Since this followed a prolonged period of credit expansion these countries appear to be entering the bust phase of the credit-driven boom-and-bust cycle; so for them, 2015 at a minimum will see a slump in economic activity as the accumulated malinvestments from the past are unwound. According to the IMF database, emerging market and developing economies at current prices account for total GDP of over $30 trillion, compared with advanced economies' GDP totalling $47 trillion. It is clear that a slump in the former will have serious repercussions for the latter.

As the reserve currency the dollar is central to the exchange value of all other currencies. This is despite attempts by China and Russia to trade without it. Furthermore and because of this dependency, the global economy has become more geared to the dollar over the years because it has expanded relative to the US. In 2000, the US was one-third of global GDP; today it is about one-fifth.

The second development, falling energy and commodity prices, while initially driven by the same factors as dollar strength, confirms the growing likelihood of a global slump. If falling prices were entirely due to increased supply of the commodities involved, we could rejoice. However, while there has been some increase in energy and commodity supply the message is clear, and that is demand at current prices has unexpectedly declined, and prices are now trying to find a new equilibrium. And because we are considering world demand, this development is being missed or misread by economists who lack a global perspective.

The price of oil has approximately halved in the last six months. The fall has been attributed variously to the west trying to bankrupt Russia, or to Saudi Arabia driving American shale production out of business. This misses the bigger picture: according to BP's Statistical Review 2014, at the beginning of last year world oil consumption comfortably exceeded supply, 91.3million barrels per day compared with 86.8. This indicates that something fundamental changed in 2014 to collapse the price, and that something can only be a sudden fall in demand in the second half.

Iron ore prices have also halved over the last six months, but other key commodities, such as copper which fell by only 11% over the period, appear to have not yet adjusted to the emerging markets slump. This complies with business cycle theory, because in the early stages of a slump businesses remain committed to their capital investment plans in the vain hope that conditions will improve. This being the case, the collapse in demand for energy can be expected to deepen and spread to other industrial raw materials as manufacturers throw in the towel and their investment plans are finally abandoned.

Therefore the economic background to the financial outlook for the global economy is not encouraging. Nor was it at the beginning of 2014, when it was obviously going to be a difficult year. The difference a year on is that the concerns about the future are more crystallised. This time last year I wrote that we were heading towards a second (to Lehman) and unexpected financial and currency crisis that could happen at any time. I only modify that to say the crisis has indeed begun and it has much further to go this year. This is the background against which we must briefly consider some of the other major currencies, and precious metals.

Japan and the yen

The complacency about Japan in the economic and investment communities is astonishing. Japan is committed to a scale of monetary inflation that if continued can only end up destroying the yen. The Bank of Japan is now financing the equivalent of twice the government deficit (¥41 trillion) by issuing new currency, some of which is being used to buy Japanese equity ETFs and property REITs. By these means pricing in bond, equity and commercial property markets has become irrelevant. "Abenomics" is about financing the government and managing the markets under the Keynesian cover of stimulating both the economy and animal spirits. In fact, with over ¥1.2 quadrillion of public sector debt the government is caught in a debt trap from which it sees no escape other than bluff. And since Abenomics was first embarked upon two years ago, the yen has fallen from 75 to the US dollar to 120, or 37%.

Instead of learning the lessons of previous hyperinflations, mainstream economists fall for the official line and ignore the facts. The facts are simple: Japan is a welfare state with an increasing and unsustainable ratio of retirees to tax-paying workers. She is the leading advanced nation on a debt path the other welfare nations are closely following. Consensus forecasts that the Japanese economy will be stimulated into recovery in 2015 are wide of the mark: instead she is destroying her currency and private sector wealth with it.

Eurozone and the euro

In the short-term the Eurozone is being revisited by its Greek problem. Whether or not the next Greek government backs off from confronting the other Eurozone members and the ECB remains to be seen. The problems for the Eurozone lie considerably deeper than Greece, made worse by politicians who have been reluctant to use the time bought by the ECB to address the structural difficulties of the 19 Eurozone members. The result is the stronger northern bloc (Germany, Netherlands, Finland and Luxembourg) is being crippled by the burden of the Mediterranean states plus Portugal plus France. And Germany and Finland have suffered the further blow of losing valuable export business from Russia.

In the coming months the Eurozone will likely face gas shortages from Russia through the trans-Ukrainian pipeline, and price deflation driven by energy and other commodity prices. Price deflation spurs two further points to consider, one false and the other true: lower prices are deemed to be recessionary (false), and falling prices increase the burden of real debt (true). The consequence is that the ECB will seek ways to expand money supply aggressively to stop the Eurozone from drifting into an economic crisis. In short, the Eurozone will likely develop its own version of Abenomics, the principal difference being the Eurozone's timeline is behind Japan's.

US and UK

Japan and the Eurozone account for total GDP of $18.3 trillion, slightly more than the US and added to the emerging and developing economies, gives a total of $48 trillion, or 62% of global GDP for nations leading the world into a slump. So when we consider the prospects for the US and the UK, together producing $20.4 trillion or 26% of the world's GDP, their prospects are not good either. The UK as a trading nation exposed to the Eurozone has immediate risk, while the US which is not so dependent on international trade, less so.

Precious metals

The foregoing analysis is of the primary economic drivers for 2015 upon which all else will ultimately depend. The risk of a global slump can be called a first order event, while the possibility of a banking crisis, derivatives default or other market dislocation brought on by a slump could be termed a second order event. There is no point in speculating about the possibility and timing of second order events occurring in 2015, because they ultimately depend on the performance of the global economy.

However, when it becomes clear to investors that the global economy is indeed entering a slump, financial and systemic risks are certain to escalate. Judging this escalation by monitoring markets will be difficult because central banks, exchange stability funds and sovereign wealth funds routinely intervene in markets, rendering them misleading as price signals.

Precious metals are the only assets beyond the long-term control of governments. They can distort precious metal markets in the short term by expanding the quantity of derivatives, and there is a body of evidence that these methods have been employed in recent years. But most price distortion today appears to have come from bullion and investment banks who are fully committed to partying in bonds, equities and derivatives, and for which gold is a spoiler. This complacency is bound to be undermined at some point, and a global economic slump is the likely catalyst.

The dangers of ever-inflating currencies are clearly illustrated by the Fiat Money Quantity, which has continued to expand at an alarming rate as shown in the chart below.

FMQ measures the amount of fiat currency issued as a replacement for gold as money, so is a measure of unbacked monetary expansion. At $13.52 trillion last November it is $5.68 trillion above the long-established pre-Lehman crisis growth path, stark evidence of a depreciating currency in monetary terms. Adjusting the price of gold for this depreciation gives a price today the equivalent of $490 in dollars at that time and quantity, so gold has roughly halved in real currency terms since the Lehman crisis.

Conclusion

There is compelling evidence that 2015 will see a global slump in economic activity. This being the case, financial and systemic risks will increase as evidence of the slump accumulates. It can be expected to undermine global equities, property and finally bond markets, which are currently all priced for economic stability. Even though these markets are increasingly controlled by central bank intervention, it is dangerous to assume this will continue to be the case as financial and systemic risks accumulate.

Precious metals are ultimately free from price management by the state. Furthermore, they are the only asset class notably under-priced today, given the enormous increase in the quantity of fiat money since the Lehman crisis.

In short, 2015 is shaping up to be very bad for fiat currencies and very good for gold and silver.

Market Report: A steady start for 2015

Fri, 01/09/2015 - 05:15

Note: GoldMoney is offering a discount of 10% on commission for any purchases of gold in the UK vault until 15 January. See http://www.goldmoney.com/xmas-exclusive

Gold and silver started the year at a muted point, with gold at $1168 and silver at $15.50, from which modest rallies have developed, with gold up 4% and silver 6%. These rises were against a background of high volatility in equity markets, a strong US dollar and very weak oil prices.

The firmly entrenched bearish opinions in recent months for the outlook for gold and silver have backed off from recent extremes. There is confusion in dealers' minds, brought about by the threat of deflation and the collapse in oil prices. Whereas hedge funds would automatically sell gold whenever they detected dollar strength, this is no longer the case. Precious metals now seem to be responding more to the threat of global financial instability triggered by a strong dollar, and fund managers are selling other commodities instead. Indeed, it is remarkable that despite the USD hitting new highs against nearly all currencies, gold has not only held its ground but is actually rising.

In reviewing last year, we note that the establishment was bearish of gold with forecasts down to $850. Remember that it was described by one major house as a slam-dunk sell. In the event, gold was more or less unchanged in USD, but rose in nearly all other currencies: 4% in sterling, 11% in euros and 15% in yen. In emerging market currencies the rise was even greater, for example doubling against the Russian Ruble. Silver, in common with most industrial metals, weakened from mid-year onwards, losing significantly over the year.

The current market is mildly encouraging for precious metals so far, as the following two charts of Comex open interest illustrate.

Gold's open interest has perked up this week after the sharp fall in November as shown in the chart above, indicating buyers returning to the market. A similar pattern is developing in silver as shown in the next chart.

Over the holidays the gold open forward rate (GOFO) stayed negative, signalling a continuing shortage of physical gold in the market. The pattern of GOFO has been to go more negative on dips below $1200, which suggests that physical buyers have been accumulating bullion at that level.

In the three trading days between Christmas and New Year the Shanghai Gold Exchange delivered a further 28.96 tonnes, giving a total delivered into Chinese wholesale markets for the year of 2,102.36 tonnes, compared with 2,194.99 tonnes in 2013. This is a remarkable figure, and with a revival in Indian demand following relaxation of import restrictions, China and India are officially absorbing the world's mine supply between them, given that there is strong evidence that China's domestic mine output is quietly absorbed by the State.

Next week

Monday

Japan - Bank Lending Data, Current Account.

Tuesday

Japan - Economy Watchers Survey, M2 Money Supply.
UK - CPI, Input Prices, ONS House Prices, Output Prices.
US - Budget Balance.

Wednesday

Eurozone - Industrial Production.
US - Import Price Index, Retail Sales, Business Inventories.
Japan - Key Machinery Orders.

Thursday

Eurozone - Trade Balance.
US - Empire State Survey, Initial Claims, PPI.

Friday

Eurozone - HICP.
US - CPI, Capacity Utilisation, Industrial Production, Net Long-Term TICS Flows.

Dealing Desk: A golden start to the new year for precious metals

Thu, 01/08/2015 - 12:54
Gold started the year with an impressive rally as safe haven worries brought buyers back to the metal.

Dealing Manager at GoldMoney, the online precious metals trader, Kelly-Ann Kearsey said, 'The GoldMoney buy to sell ratio was clearly in favour of buyers at the start of 2015, after the quiet festive season and a run of poor performance from gold ahead of the year end.

We have come to expect the shift of precious metals out of western vaults and into eastern locations, especially Singapore, but this week we also saw a big buy into the Rhenus Logistics vault in Switzerland.

Obviously, oil's woes and Eurozone fears have increased gold's safe haven appeal, but countering this is the continued strength of the dollar and US economy, so the yellow metal's rally is already beginning to lose its shine. Figures out in the next week, including US employment and retail sales, the Chinese Consumer Price Index and UK data, will all give further direction to the market.

Silver was popular with our customers at the end of last year as bargain hunting was rife, and this has continued into 2015. Basically, silver is still good value and we might well see that continuing to be the focus of our customers in the coming weeks.'

Performance so far this year: 08/01/15 16:00. Gold up 2.4% to $1,212.30, Silver increased 4.3% to $16.40, Platinum risen 1.4% to $1,219.74 and Palladium decreased 0.4% to $792.50.

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney currently has around 20,000 customers worldwide and holds $1.2billion of precious metals in its partner vaults.

GoldMoney has offices in Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com.

Follow the GoldMoney Dealing desk team on Twitter: @goldmoneynews

Derivatives and mass financial destruction

Fri, 12/19/2014 - 06:24
Globally systemically important banks (G-SIBs in the language of the Financial Stability Board) are to be bailed-in if they fail, moving the cost from governments to the depositors, bondholders and shareholders.

There are exceptions to this rule, principally, small depositors who are protected by government schemes, and also derivatives, so the bail-in is partial and bail-out in these respects still applies.

With oil prices having halved in the last six months, together with the attendant currency destabilisation, there have been significant transfers of value through derivative positions, so large that financial instability may result. Derivatives are important, because their gross nominal value amounted to $691 trillion at the end of last June, about nine times the global GDP. Furthermore, the vast bulk of them have G-SIBs as counterparties. The concentration of derivative business in the G-SIBs is readily apparent in the US, where the top 25 holding companies (banks and their affiliated businesses) held a notional $305.2 trillion of derivatives, of which just five banks held 95% between them.

In the event of just one of these G-SIBs failing, the dominoes of counterparty risk would probably all topple, wiping out the financial system because of this ownership concentration. To prevent this happening two important amendments have been introduced. Firstly ISDA, the body that standardises over-the-counter (OTC) derivative contracts, recently inserted an amendment so that if a counterparty to an OTC derivative contract fails, a time delay of 48 hours is introduced to enable the regulators to intervene with a solution. And secondly, derivatives, along with insured deposits, are to be classified as "excluded liabilities" by the regulators in the event of a bail-in.

This means a government that is responsible for a G-SIB's banking license has no alternative but to take on the liability through its central bank. If it is only one G-SIB in trouble, for example due to the activities of a rogue trader, one could see the G-SIB being returned to the market in due course, recapitalised but with contractual relationships in the OTC markets intact.

If, on the other hand, there is a wider systemic problem, such as instability in a major commodity market like energy, and if this instability is transmitted to other sectors via currency, credit and stock markets, a number of G-SIBs could be threatened with insolvency, both through their lending business and also through derivative exposure. In this case you can forget bail-ins: there would have to be a coordinated approach between central banks in multiple jurisdictions to contain systemic problems. But either way, governments will have to stand as counterparty of last resort.

The US Government has suddenly become aware of this risk. In the recent omnibus finance bill a clause was hurriedly inserted transferring derivative liabilities to the Government in the event of a bank failure. What is alarming is not that this reality has been accepted by the politicians, but the hurry with which it was enacted.

Instead of a normal consultative procedure allowing the legislators to draft the appropriate clause, the wording was lifted at short notice from a submission by Citibank, which has some $61 trillion-worth of derivatives on its own books, with virtually no alterations. Either the insertion was correcting an oversight at the very last minute or, alternatively, that it has suddenly become an urgent matter for the too-big-to-fail banks. The coincidence of current market volatility and this hurried legislation cannot be lightly dismissed and suggests it is the latter.

Market Report: Relative calm for PMs in wild markets

Fri, 12/19/2014 - 06:15
This week has been extremely volatile for oil, currencies and stock markets. Against this background gold and silver have drifted sideways to slightly lower, which given the dollar's strong performance is almost a positive result.

Along with a collapsing oil price on Monday and Tuesday, the Russian ruble fell from 58 to the USD on Monday to 77 the following day. It was clear that Russian oligarchs were getting out of rubles as fast as they could, hence the steep fall. By yesterday things had calmed down and the ruble was back to the 60.4 this morning. There was a slight frisson of excitement over the release of the FOMC minutes on Wednesday, to be followed by Quadruple Witching today. Stock index futures, stock index options, stock options and single stock options all expire on the third Friday of December. The result is the Dow 30 Index rose by 4.3% between Tuesday's opening and last night's close on an enormous bear squeeze.

Gold and silver couldn't escape all this volatility entirely. For example, on Tuesday when the ruble was collapsing then recovering, gold swung through a $32 range, though it ended up unchanged on the day. Silver, after recent strength, fell heavily between Monday afternoon and Tuesday afternoon UK-time, by $1.30, or 7.7%, underperforming gold for the rest of the week. Open interest on Comex for both metals remained stable after recent falls, as shown in the two charts below.

Short positions have now been reduced significantly, so the possibility of a bear squeeze has also lessened. However, one would not expect a bullish trend to develop from an extreme short position, only a technical bounce. So while there is not enough evidence to say the bear market is over, we can say the conditions for a new bull trend are at least falling into place.

Another good marker for a market that is on the turn is the quality of comment. On Wednesday rumours surfaced that Russia was selling its gold to defend the ruble, and this was even reported by Bloomberg and so repeated by serious analysts without checking the story. So far as I can establish it originated from a Russian news channel, Vesti Finance, which misinterpreted a fall in foreign reserves of $4.3bn as a fall in official gold holdings.

In other news, Johnson Matthey announced the sale of its gold and silver refining business to Asahi Holdings, a Japanese refiner of rare and precious metals. This deal makes sense to Asahi, given the rapid debasement of the yen and the likely demand for gold and silver from Japan in the future, as well as in Asahi's other Asian markets. In Switzerland, the Swiss Central Bank announced negative interest rates of 0.25% on deposits, making it attractive for Swiss investors to switch to gold.

Chinese wholesale demand delivered through the Shanghai Gold Exchange last week was 50.0275 tonnes, making it 1,955 so far this year, with over 2,000 tonnes for the second year in a row likely. Since then, London's gold forward rates have gone into backwardation signalling that global demand is outstripping supply again.

In conclusion, it has been an eventful week. The only caution worth mentioning is the month, quarter and year end is often the occasion banks will want to see lower bullion prices for valuation purposes, so we cannot rule out one last dip in precious metal prices over the next two weeks. Otherwise, desperate hopes the Russians are driven to sell tells us the remaining shorts are grasping at straws.

Next week

Monday

Eurozone - Flash Consumer Sentiment.
US - Existing Home Sales

Tuesday

UK - BBA Mortgage Approvals, Current Account, GDP (3rd est.), Index of Services.
US - Core PCE Price Index (3rd est.), Durable Goods Orders, GDP (3rd est.), FHFA House Price Index, Core PCE Price Index, New Home Sales, Personal Income, Personal Spending.

Wednesday

US - Initial Claims

Thursday (Christmas Day)

Japan - Construction Orders, Housing Starts, CPI Core, Real Household Spending, Unemployment, Industrial production, Retail Sales.

Friday

No material announcements.

Dealing Desk: Volatile week for gold while silver shows weak prices

Thu, 12/18/2014 - 13:00
It's been a volatile week for the yellow metal in quiet trading as global data and economic news have caused prices to pull in various directions.

Dealing Manager at GoldMoney, the online precious metals trader, Kelly-Ann Kearsey said, 'The week started with weaker than expected Chinese factory data pushing oil prices down further, forcing Brent Crude to below $60 a barrel. This had the effect of decreasing gold prices as deflationary, rather than inflationary pressures took the helm.

Markets were waiting for news from the US Federal Reserve bank to see when they might raise interest rates. The dovish stance that was announced supported gold and hit the dollar, but that was a short-lived reprieve as the US Consumer Confidence data gave further support to the American economy and gold once more headed south.

However, while the US economy still appears to be going in the right direction, others aren't. The Russian Government's intervention to support the Ruble, raising interest rates to 17%, has encouraged some safe haven buying, but generally GoldMoney customers have been selling the yellow metal in seasonally quiet trading.

The focus of GoldMoney buyers has been on the white metals, we've seen the usual trend of selling out of the UK and Switzerland, but the buying of silver has been heading into our Singapore vaults along with increased interest in platinum and palladium.

With the gold/silver ratio standing at 74, silver is definitely looking like a good option and our customers are taking advantage with some bargain buying.

We aren't expecting a lot of customer activity from now until year end, although the quadruple witching* on Friday will likely add some further volatility to an unpredictable gold market.

It's interesting to note that this time last year gold prices weren't far off what they are now, our last market report before Christmas recorded gold at $1202.81, just above its support level and around the numbers we've been seeing this week. However silver is down on last year's $19.41 which is why we're seeing interest from our customers in what looks to be a well-priced opportunity.

With little activity expected from our customers during the seasonal holiday our market report will return on January 8th. In the meantime, we wish you all a happy Christmas and prosperous New Year.'

*An event that occurs when the contracts for stock index futures, stock index options and stock options and single stock futures all expire on the same day.

Week on Week performance: 18/12/14 16:00. Gold fell 2.2% to $1,195.01, Silver dropped 6.6% to $15.93, Platinum slipped 3.4% to $1,196.95 and Palladium decreased 3.5% to $789.40.

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney currently has over 22,000 customers worldwide and holds $1.2billion of precious metals in its partner vaults.

GoldMoney has offices in Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com.

Follow the GoldMoney Dealing desk team on Twitter: @goldmoneynews

Christmas Exclusive Offer

Thu, 12/18/2014 - 12:12

Thank you for your loyal support in 2014.

As a token of our appreciation, we would like to offer you a 10% reduction on our lowest published GoldMoney buy fees when you make any gold purchase for storage in the London vault. How it works

Follow the steps below to take advantage of our special promotion

  1. Choose the amount of gold that you want to buy in either USD, EUR or GBP
  2. Write down the relevant promotional code from the list below, you will need this later
  3. Login to your Holding or sign up to open a Holding for free
  4. Click "Buy & Sell Exchanges" and then "Buy Metal". Please ensure you have funded your Holding
  5. Enter your Promotional Code on the first page and click 'Apply'. Continue through the buy process
Hurry, offer ends 15th January 2015.  Your discount code For US Dollar orders, please use XMASUSD For Euro orders, please use XMASEUR For Great British Pound orders, please use XMASGBP

 

  Terms of the offer

This offer is available from 2:01pm UK time on 19 December 2014 and expires at 11:59pm UK time on 15 January 2015.

This promotion code is applicable for purchases of gold for storage in Via-Mat London, in either USD, Euros, or pounds sterling only.

This offer cannot be used in conjunction with any other offer or discount.

This offer is open only to residents of countries in which GoldMoney accepts customers, as set out in GoldMoney’s Customer Acceptance Policy. GoldMoney does not accept customers from certain countries, including, but not limited to, the Netherlands or from countries subject to any economic or trade sanctions.

Employees of GoldMoney or their immediate family members shall not be permitted to take part in this promotion.

Any disputes arising in relation to this promotion will be governed by the laws of the Island of Jersey and the parties agree that the Courts of Jersey shall have non-exclusive jurisdiction.

Use of the promotional code is deemed acceptance of the terms of the promotion and of GoldMoney’s Customer Agreement.

GoldMoney reserves the right to amend, vary, extend, or discontinue a promotion at any stage, for any reason, without notice.

GoldMoney takes no responsibility for any inability to enter, complete, continue, or conclude the promotion due to equipment or technical malfunction, busy lines, inadvertent disconnection, force majeure, or otherwise.

GoldMoney is the trading name of Net Transactions Limited, a company incorporated in Jersey, with its registered office at 32 Commercial Street, St Helier, JE2 3RU, Jersey.

Christmas Exclusive Offer

Thu, 12/18/2014 - 12:12

Thank you for your loyal support in 2014.

As a token of our appreciation, we would like to offer you a 10% reduction on our lowest published GoldMoney buy fees when you make any gold purchase for storage in the London vault. How it works

Follow the steps below to take advantage of our special promotion

  1. Choose the amount of gold that you want to buy in either USD, EUR or GBP
  2. Write down the relevant promotional code from the list below  – you will need this later
  3. Login to your Holding or sign up to open a Holding for free
  4. Click "Buy & Sell Exchanges" and then "Buy Metal" - please ensure you have funded your Holding
  5. Enter your Promotional Code and continue through the buy process
Hurry, offer ends 15th January 2015.  Your discount code For US Dollar orders, please use XMASUSD For Euro orders, please use XMASEUR For British Pound orders, please use XMASGBP

 

  Terms of the offer

This offer is available from 2:01pm UK time on 19 December 2014 and expires at 11:59pm UK time on 15 January 2015.

This promotion code is applicable for purchases of gold for storage in Via-Mat London, in either USD, Euros, or pounds sterling only.

This offer cannot be used in conjunction with any other offer or discount.

This offer is open only to residents of countries in which GoldMoney accepts customers, as set out in GoldMoney’s Customer Acceptance Policy. GoldMoney does not accept customers from certain countries, including, but not limited to, the Netherlands or from countries subject to any economic or trade sanctions.

Employees of GoldMoney or their immediate family members shall not be permitted to take part in this promotion.

Any disputes arising in relation to this promotion will be governed by the laws of the Island of Jersey and the parties agree that the Courts of Jersey shall have non-exclusive jurisdiction.

Use of the promotional code is deemed acceptance of the terms of the promotion and of GoldMoney’s Customer Agreement.

GoldMoney reserves the right to amend, vary, extend, or discontinue a promotion at any stage, for any reason, without notice.

GoldMoney takes no responsibility for any inability to enter, complete, continue, or conclude the promotion due to equipment or technical malfunction, busy lines, inadvertent disconnection, force majeure, or otherwise.

GoldMoney is the trading name of Net Transactions Limited, a company incorporated in Jersey, with its registered office at 32 Commercial Street, St Helier, JE2 3RU, Jersey.

GoldMoney strengthens senior team

Thu, 12/18/2014 - 10:18
GoldMoney has expanded its senior team with the appointment of Meryl Le Feuvre as Marketing Manager and Paul Woodland, Head of Customer Relations.

GoldMoney Chief Executive Officer, Geoff Turk said that, 'We are a well established global company with over 22,000 customers, but it's important to continually develop the business. The appointments of Meryl and Paul will support our future marketing and customer acquisition strategy.'

Meryl joins GoldMoney from RBS International in Jersey where she had been PR Manager. Prior to this she worked in a number of marketing management roles within the UK after graduating from the University of Manchester.

Geoff commented: 'Meryl will have oversight for the marketing and business development team and will help drive our continued expansion. Her experience in the finance and professional services industry will compliment our innovative online proposition.'

Meryl added, 'I'm very excited by the growth possibilities at GoldMoney. We have a pioneering e-commerce solution dealing in the world's oldest form of currency, gold. I look forward to enabling individuals and institutions globally to preserve their wealth through diversification into precious metals. The recent inclusion of gold bullion in the UK's Self Investment Personal Pension Schemes is just one example of how its investment qualities are being recognised.'

Meryl has an MPhil in Business Administration and a BSc (Hons) in International Management with French.

Geoff Turk said Paul's role reflects the importance they places on ensuring their customers are satisfied, 'He is a results driven, energetic and enthusiastic manager and the relationship management team are looking forward to working with him.'

Paul comes to GoldMoney from Sovereign Trust in Guernsey where he was Business Development Manager. Prior to this he worked for Barclays heading up their Local Markets function and was responsible for Premier, Personal and Branch banking. He has also been an Area Manager for RBS Private Bank in the UK where he led a highly experienced team of private bankers whose main responsibility was to acquire new business and build effective relationships with internal and external stakeholders.

Paul is looking forward to heading up GoldMoney's Relationship Management team, 'Customer care is the core of any business. It's not just about bringing in new customers, but about ensuring your existing clients aren't just content with the service they are receiving, but feel they are being listened to. I shall be utilizing my previous experience in customer facing roles to help drive GoldMoney's relationships internally and externally.'

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email gwyn@directinput.je

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney stores around $1.4billion of precious metals worldwide for over 22,000 customers.

GoldMoney has offices in Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com.

Follow the GoldMoney Dealing desk team on Twitter: @goldmoneynews

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