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Updated: 2 hours 47 min ago

The wages-fuel-demand fallacy

Fri, 08/29/2014 - 05:47
In recent months talking heads, disappointed with the lack of economic recovery, have turned their attention to wages. If only wages could grow, they say, there would be more demand for goods and services: without wage growth, economies will continue to stagnate.

It amounts to a non-specific call to stimulate aggregate demand by continuing with or even accelerating the expansion of money supply. The thinking is the same as that behind Bernanke's monetary distribution by helicopter. Unfortunately for these wishful-thinkers the disciplines of the markets cannot be bypassed. If you give everyone more money without a balancing increase in the supply of goods, there is no surer way of stimulating price inflation, collapsing a currency's purchasing power and losing all control of interest rates.

The underlying error is to fail to understand that economising individuals make things in order to be able to buy things. That is the order of events, earn it first and spend it second. No amount of monetary shenanigans can change this basic fact. Instead, expanding the quantity of money will always end up devaluing the wealth and earning-power of ordinary people, the same people that are being encouraged to spend, and destroying genuine economic activity in the process.

This is the reason monetary stimulation never works, except for a short period if and when the public are fooled by the process. Businesses – owned and managed by ordinary people - are not fooled by it any more: they are buying in their equity instead of investing in new production because they know that investing in production doesn't earn a return. This is the logical response by businesses to the destruction of their customers' wealth through currency debasement.

Let me sum up currency debasement with an aphorism:

"You print some money to rob the wealth of ordinary people
to give to the banksto lend to business
to make their products
for customers to buy with money devalued by printing."

It is as ridiculous a circular proposition as perpetual motion, yet central banks never seem to question it. Monetary stimulus fails with every credit cycle when the destruction of wealth is exposed by rising prices. But in this credit cycle the deception was so obvious to the general public that it failed from the outset.

The last five years have seen all beliefs in the manageability of aggregate demand comprehensively demolished by experience. The unfortunate result of this failure is that central bankers now see no alternative to maintaining things as they are, because the financial system has become horribly over-geared and probably wouldn't survive the rise in interest rates a genuine economic recovery entails anyway. Price inflation would almost certainly rise well above the 2% target forcing central banks to raise interest rates, throwing bonds and stocks into a severe bear market, and imperilling government finances. The financial system is simply too highly geared to survive a credit-driven recovery.

Japan, which has accelerated monetary debasement of the yen at an unprecedented rate, finds itself in this trap. If anything, the pace of its economic deterioration is increasing. The explanation is simple and confirms the obvious: monetary debasement impoverishes ordinary people. Far from boosting the economy it is rapidly driving us into a global slump.

The solution is not higher wages.

Market Report: Summer doldrums coming to an end

Fri, 08/29/2014 - 05:28
The pattern of trading in precious metals changed for the better this week. After London's bank holiday on Monday, for the first time in a long time the market opened in London's pre-market with higher prices. This indicated Asian or Middle-Eastern physical demand was returning to the market. Predictably, prices drifted lower during London hours as paper trading took over, and all the gains were more or less lost by close of play on Comex in New York.

It was a similar story on Wednesday. Yesterday, (Thursday) started the same way, but this time the move gained more traction; but volumes remain pitifully low, in common with open interest. Today this pattern was not repeated with gold kicking off unchanged on overnight levels. However, gold is up $15 on the week and feels more firmly based.

Measured by deliveries on the Shanghai Gold Exchange, Chinese demand is increasing, with last week's figure rising to 46 tonnes, having increased every week in August. So far this year over 1,200 tonnes have been delivered, and the extension of trading and therefore potential demand into the Free Trade Zone is due to kick off in September.

The chart of the gold price and open interest on Comex is shown below.

August is a notoriously poor trading month, with traders in the northern hemisphere on holiday, or at least not thinking about markets. September is wake-up time, and statistically the best month for gold. Will this be the pattern this year?

Trading in silver continues to be healthier, even if the price performance has been disappointing, with the gold/silver ratio rising to 66 from 63 earlier in the month. Open interest had its first significant fall on Wednesday, when the price rose marginally. This suggests that on balance there is some bear closing in futures. The action is shown in our next chart.

Could this be a harbinger of better times? Quite likely: being mostly an industrial metal, there is some evidence that commercial users are locking in low prices by holding futures positions. Bear in mind that two years ago, users probably estimated silver prices at $35+ in their business plans, so current prices for them are too good to miss.

Quick side-note: palladium continues to power ahead, having made all-time highs consistently in recent months to challenge $900 this week.

PMs and the economic outlook

When it comes to the broader picture, the one chart that says it all is that of the US 10-year Treasury bond.

This is the year when the US economy was supposed to recover: not according to government bond yields. US 10-year Treasury yields slipped this week to 2.33%, and 30-year to 3.08%. The same story is evident elsewhere, notably in the Eurozone and there is only one likely explanation: the advanced economies are on the verge of an economic slump.

This matters for gold and therefore silver, because in such an event opinions are divided over the outcome for prices. Banks, which are after all children of paper currencies and credit, naturally think of government bonds as the safest of safe havens. However, in the event of a global slump, we can expect central banks to expand money supply as much as may be required to stop asset prices falling. This transfers systemic risk from the banking system into currencies, leaving gold and silver as the safest of safe havens.

Next week

Monday.

Japan: Vehicle Sales.
Eurozone: manufacturing PMI.
UK: BoE Mortgage Approvals, Consumer Credit, M4 Money Supply.

Tuesday.

Eurozone: PPI.
US: manufacturing PMI, Construction Spending, ISM Manufacturing.

Wednesday.

Eurozone: Composite PMI, Services PMI, GDP (2nd est.), Retail Trade.
US: Factory Orders, Vehicle Sales.

Thursday.

UK: BoE Base Rate.
Eurozone: ECB Deposit Rate.
US: ADP Employment Survey, Initial Claims, Non-Farm Productivity, Trade balance, Unit Labour Costs, ISM Non-Manufacturing.

Friday.

Japan: Leading Indicator.
US: Non-Farm Payrolls, Private Payrolls, Unemployment.

Dealing Desk: Palladium prices rise, but silver shines for GoldMoney customers

Thu, 08/28/2014 - 12:46
Overall it has been palladium's week with prices rising to their highest level since February 2001. However for customers of GoldMoney, the online precious metals trader, it was silver that shone.

GoldMoney Dealing Manager, Kelly-Ann Kearsey, said: 'Whilst our trading volumes have been slightly lower than last week, we've seen some large high net worth client purchases and their preference has been for silver and storage in Switzerland. For the rest of our customers Singapore stayed the most popular vault and there was an increase in interest for platinum and palladium.

'For most of this week gold has risen slightly against a softening dollar, although today's Gross Domestic Product figures showed the US economy had rebounded more strongly than thought in the second quarter which knocked the yellow metal back and strengthened the dollar. With expectations of an imminent rate hike in the US, gold could struggle to perform against the greenback without any other directional impetus.

'Geo-political tensions have reduced their effect on the gold price in the last few weeks, but the increased tension between the Ukraine and Russia may still provide a possible stirring point. The tension and its resulting political and trade fall-out is likely to have already been the impetus on the palladium prices, combined with more potential industrial unrest in South Africa, as these are the two key producers.

'For the most part GoldMoney customers took place in some modest profit-taking on gold this week, whilst individual preference, possibly hedging a future price hike, saw silver in their baskets.'

16:00 28/08/14: Week on week performance: Gold rose 0.8% to $1,288.80; Silver added 0.6% to $19.54; Platinum also gained 0.6% to $1,421.99 while Palladium jumped 2.5% to $894.47.

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 $1.4billion 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: @goldmoneyupdate

SCO and Mackinder’s prophecy

Fri, 08/22/2014 - 05:24
There will be a defining geopolitical event next month when India, Pakistan, Iran and Mongolia become full members of the Shanghai Cooperation Organisation (SCO). This will increase the population of SCO members to an estimated 3.05 billion. We should care about this because it is the intention of the SCO to do away with the US dollar for trade settlement.

The nations joining in September are currently designated as Observer States and the only one left will be Afghanistan, which will presumably join when it can untie itself from NATO. Dialog Partners, defined as states which share the goals and principals of the SCO and wish to develop mutually beneficial relations, include Belarus Sri Lanka and Turkey. Turkey is of special interest because it has been a long-standing NATO member. It had hoped to join the EU but it became clear that this was never going to happen. Instead under the leadership of Recep Erdoğan Turkey is moving towards the SCO.

Erdoğan was re-elected earlier this month by a comfortable majority and it will be interesting to see how quickly Turkey's new alignment evolves. Erdoğan must be aware that Asia is on the up while the EU declines, in which case Turkey as a front-line state is better off joining the SCO.

The SCO's influence extends beyond its boundaries, with China and India's diasporas populating much of the rest of south-east Asia. SCO members, particularly China and India, are also the largest consumers of Middle Eastern energy. And because they write the biggest cheques they have primacy over the west; so the swing away from the petro-dollar towards Asia is in the making. China also has sub-Saharan Africa sewn up, securing vital minerals such as copper from Zambia.

We must also consider why Russia is aggressively driving the pace of the SCO's development, and it's not just to escape the west's economic sanctions as many observers think. Fundamentally the SCO is about resources and the production of goods: Russia controls Asia's resources and China turns them into goods.

One of the first persons to identify the geopolitical importance of Russia's resources was Halford Mackinder in a paper for the Royal Geographical Society in 1904. He later developed it into his Heartland Theory. Mackinder argued that control of the Heartland, which stretched from the Volga to the Yangtze, would control the "World-Island", which was his term for Europe, Asia and Africa. Over a century later, Mackinder's theory resonates with the SCO.

The underlying point is that North and South America, Britain, Japan and Australasia in the final analysis are less important than Mackinder's World-Island. There was a time when British and then American primacy outweighed its importance, but this is no longer true. If Mackinder's theory is right about the overriding importance of undeveloped resources, Russia with the backing of the SCO's members is positioned to become the most powerful nation on earth.

The SCO is the greatest challenge yet mounted to American economic power, and Russia and China are clearly determined to ditch the dollar. We don't yet know what will replace it. However, the fact that the Central Bank of Russia and nearly all the other central banks and governments in the SCO have been increasing their gold reserves could be an important clue as to how the representatives of 3 billion Euro-Asians see the future of trans-Asian money.

Market Report: Summer drift continues

Fri, 08/22/2014 - 05:06
Gold drifted lower this week, with the price undermined by lack of interest on low volume and a slightly more hawkish tone in the FOMC minutes released on Wednesday. The chart below, of gold and open interest on Comex, shows how the price has declined while open interest has hardly budged from its historically low level.

The underlying factor has been dollar strength rather than gold's weakness. Since last Friday the dollar has risen nearly 1% against the euro and pound and 1½% against the yen; so a 2% fall for gold against the dollar is not a big deal. Furthermore oil prices have fallen this week with US crude down nearly 2%.

The dollar's strength was fuelled by the FOMC's minutes, which recognise that the improvement in the labour market has been somewhat better than expected. Even though the Committee downgraded its expectations for GDP growth slightly, analysts view the improvement in unemployment numbers as more important. Sterling had been benefiting recently from the same story until Mark Carney at the BoE seized upon the fall in average earnings cum-bonuses as an excuse to defuse expectations of an early rise in interest rates.

Whatever the hawks say, central bankers are unlikely to bring forward an increase in interest rates until price inflation rises towards mandated targets. At the moment it is trending the other way. Janet Yellen is due to speak at the Jackson Hole meeting later today, and it is thought likely that she will dampen down speculation on this topic. Both Carney and Yellen have a delicate problem: an improving economy will lead to higher interest rates and therefore losses in bonds with adverse consequences for those banks which are heavily invested; alternatively a declining economy will also hit the banks as bad debts rise. Therefore it is natural for them to keep rates as they are for as long as possible.

In other gold news, Russia's central bank announced the acquisition of a further 300,000 ounces of gold, taking their holding to over 1,100 tonnes. This is double the amount of previous purchases, and should raise the question as to why Russia has accelerated her purchases.

Silver is behaving somewhat differently. While gold was down over 1% yesterday, silver closed unchanged. This relative strength suggests there is an underlying shortage of physical, and a price premium of about 7% in Shanghai confirms it. Open interest on Comex is also rising on every price fall and it now stands at the highest level since February 2008, shown in the chart below.

A significant divergence between open interest and price usually signals a market turn. In this case it appears that users of the metal are taking the opportunity to lock in ultra-low prices. Speculators are likely to return as buyers at the first sign of dollar weakness/gold strength, so the silver price should then rally strongly.

This morning with the dollar slightly easier precious metals opened in Europe on a firmer note, awaiting Yellen's speech at Jackson Hole.

Next Week
Monday.

UK: Bank Holiday.
US: New Home Sales

Tuesday.

US: Durable Goods Orders, S&P Case-Shiller Home Price Index.

Wednesday.

No material announcements.

Thursday.

Eurozone: M3 Money Supply, Business Climate Index, Economic Sentiment, Industrial Sentiment.
UK: CBI Distributive Trades.
US: Core PCE Price Index, GDP (2nd est.), Initial Claims, Pending Home Sales.
Japan: CPI (core), Household Spending, Unemployment, Industrial Production, Retail Sales.

Friday.

Japan: Housing Starts, Construction Orders.
Eurozone: Flash HICP, Unemployment.
US: Core CPI , Person Income, Personal Spending.

Dealing Desk: GoldMoney customers take advantage of the sell-off and buy

Thu, 08/21/2014 - 13:34
This week saw profit taking and a sell-off across the precious metals' market, but for the customers of online trader, GoldMoney, it was seen as a chance to buy.

Head of Dealing and Settlements, Roland Khounlivong said, 'With the dollar still strengthening and the economic figures coming out of the USA all backing up the upbeat outlook, gold's safe haven appeal has diminished. This is unlikely to change in the short term as the Federal Reserve Open Market Committee on Wednesday opened the door to the earlier than expected interest rate rises which will add further to the dollar's attraction.

'Despite the continuing geopolitical issues around the world with Russia and the Ukraine and the Iraq situation, the focus has been firmly on the news from the central banks.

'Interestingly there was no discrimination among the metals with them all slipping in price, but among our customers we've seen equal volumes of buyers for both gold and silver, and they outweighed sellers. Considering the market has probably reached its summer holiday low point in terms of volume, there has been some significant purchasing of both these metals. Volumes are about 40% down on last week, but there are clearly some who have taken advantage of gold's two month low.

'As has been the trend for some time, those who are buying are favouring our partner vaults in Singapore and Hong Kong.

'We're expecting a quiet week next week, and then a return to more normal trading volumes as the summer holidays come to an end.

16:00 21/08/14: Week on week performance: Gold down 2.6% to $1,278.60; Silver fell 2.3% to $19.43; Platinum lost 3.1% to $1,413.00 while Palladium also slipped 1.1% to $873.00.

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 $1.4billion 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: @goldmoneyupdate

Jumping out of a plane for a colleague and charity

Tue, 08/19/2014 - 05:04
A member of the GoldMoney team in Jersey has decided to make a skydive jump to raise funds for charity. Kathrin Hasenkampf, a bookkeeper at GoldMoney, wants to make the 10,000 feet dive after being inspired by her work mate's strength in dealing with a cancer diagnosis.

Kathrin will be making the tandem parachute jump in aid of Cancer Research UK and the Jersey Cancer Trust: 'I have never done anything like this before, but one of my colleagues was diagnosed with cancer in December and I just thought she was amazing, still coming into work while having her treatment, and so I wanted to do something. I'm fully funding the jump myself as I want all the donations to go straight to the charities.'

To give Kathrin some moral support she has invited the rest of her GoldMoney colleagues to witness her jump. GoldMoney CEO, Geoff Turk said they were looking forward to it: 'It's not often I get to say that we're delighted one of our employees is flinging themselves out of plane, but in this case I can. Kathrin's reasons for jumping goes to show just what a close knit team we have at GoldMoney, and I'm pleased to say that we have started the fundraising with a donation from the company.'

Kathrin is hoping to jump on 31st August landing at Bel Royal. She has set up a JustGiving page from where donations will go to Cancer Research UK, and all offline donations will go to Jersey Cancer Trust. Kathrin has already held a fundraising cake bake at work and plans to do more before the jump.

'I'm not doing any training, but I am trying to ensure I don't eat too many of the cakes I'm baking for the fundraising - I wouldn't want to put excess stress on the parachute! I'm really looking forward to it, albeit a little apprehensive, but my colleague is really appreciative of what I am doing for her and the two chosen charities. We just all wish her well and I hope that what I'm doing will go towards helping her and others in fighting this illness.'

Kathrin's JustGiving page: https://www.justgiving.com/Kathrinandcaro

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: @goldmoneyupdate

 

Turk - The Greatest Fear For Central Planners In Gold & Silver

Mon, 08/18/2014 - 06:20
With continued uncertainty in major markets,  James Turk spoke with King World News about what the central planners fear most in the gold and silver markets. Turk also discussed why the price of both metals is now set to explode higher.

Read the full interview at King World News

 

No escape from the dollar as the currency standard

Fri, 08/15/2014 - 05:37
All commodities and near-commodities are priced internationally in dollars, and the dollar is used for over 80% of cross-border trade settlements. Consequently the dollar is the base currency for all countries' foreign reserves, giving it its reserve status. However, there are now challenges to the dollar's hegemony, with Russia, China as well as the other members, dialog-partners and associates of the Shanghai Cooperation Organisation (SCO), taking deliberate steps towards doing away with the dollar entirely for pan-Asian trade. Recent developments setting up a rival to the IMF by the BRICS nations is part of this challenge.

If you follow the geopolitics, you might reasonably conclude that the dollar's dominance has peaked and is now declining. The SCO appears to believe there can be a transition away from the dollar, an idea that could turn out to be dangerously wrong at a time of great but generally unrecognised currency fragility. At the heart of the issue there is a worrying lack of distinction between the dollar's reserve function and its function as the monetary standard from when it replaced gold in 1971. To fully appreciate the importance of the dollar as the standard for all other currencies, we must review the monetary history behind how and why the dollar replaced gold, and the implications for today.

The US dollar progressively broke its relationship with the gold standard from 1933 onwards, when gold ownership by US citizens was unexpectedly banned. The Bretton Woods Agreement after 1944 then defined the gold-based monetary order until the Nixon Shock in 1971. President Nixon ended Bretton Woods and all rights to dollar conversion into gold. By default, all other national currencies went on a US dollar standard, albeit a floating one. Crucially, the confidence in the purchasing power of all fiat currencies became vested in an underlying confidence in the purchasing power of the US dollar. This is a separate monetary function from the dollar's reserve status, though the two functions are intertwined and may be difficult to separate in practice.

There are obviously differences in the way the gold standard operated compared with the dollar standard of today, but the function is the same. Before the Nixon Shock, the relationship between the gold standard and the US dollar was illustrated famously by John Exter, who showed gold at the apex of an inverse pyramid, supporting ever-increasing categories and quantities of dollars and dollar liabilities. Between 1932 and 1971 the quantity of money and bank credit expanded, and this is shown in the graphic below, based on Exter's illustration, but with a pure monetary emphasis.

In 1932 when gold officially exchanged at $20.67 per ounce the relationship with the monetary base was by today's standards very conservative. However, the fractional-reserve credit expansion at an additional 9.3 times (note that M3 includes the monetary base) was a threat to the entire US banking system when the banks were facing escalating bad debts because of the economic depression. And since the dollar was technically a money-substitute (with gold being the freely-exchangable underlying money), the dollar risked being exposed as over-issued and therefore valueless. For this reason, President Roosevelt's Executive Order forcing American residents to surrender their gold and rescinding all rights to exchange their dollars for gold, was the only feasible option open to his government, the alternative being the collapse of the banking system. In January 1934 he revalued gold to $35 per ounce, making the Exter pyramid relationships more sustainable.

In 1944, the Bretton Woods Agreement formalised arrangements for central banks to fix their currencies to the dollar and for them to continue to have the right to exchange dollars at the Fed for gold at $35 per ounce. So central banks while originating their own currencies were still on a gold standard, through the US dollar. By 1971, when President Nixon ended this limited gold convertibility, the Fed's monetary base and broad M3 money had become exceedingly stretched at nearly seven times and 72 times respectively.

The alternative would have been to revalue gold from $35 to a level where the US would suffer no more outflows, taking a leaf out of President Roosevelt's book. Revaluation of gold was ruled out and rigorous attempts were made to discredit gold instead. The dollar therefore replaced gold as the de facto standard for all currencies. Freed from the discipline of gold, the Fed was able to continue to expand its monetary base and US banks their bank credit, while growing foreign demand for dollars to purchase energy, other commodities and for trade-finance, underwrote its purchasing power. And because the demise of Bretton Woods led to the end of fixed exchange rates, the expansion of US dollar quantities was mirrored by the expansion of cash and credit in other currencies as well, as non-US central banks managed their currency rates vis-à-vis the dollar base.

The next pyramid shows the relationship not only between US dollar quantities but also includes an estimate of the dollar equivalent of global broad money supply, and a new feature that did not noticeably exist in 1971: shadow banking. This quantifies the relationship between dollar money and the quantity of money in other currencies, with the dollar as the new currency standard.

In 2013 the relationship of US bank deposits relative to the Fed's monetary base was only 2.4 times. This was due to the rapid expansion of the Fed's balance sheet since mid-2008, having increased to 4.7 times the Pre-Lehman Monetary Base. The world's broad money at $168.5 trillion is geared nearly 40 times, including the Financial Stability Board's estimate of off-balance sheet shadow banking. To put it mildly, even after the rapid expansion of the Fed's Monetary Base, which dramatically lowered the broader money ratios from what they would otherwise have been, the international monetary situation is still dangerously geared.

The risk of a new currency crisis has been dramatically increased by the major central banks acting to maintain financial asset values, particularly in bond and stock markets. This transfers risk from investment assets into the currencies themselves, something that is certain to become evident in the event of a rise in interest rates. For example a 10% fall in over-valued sovereign bond prices could easily threaten the survival of some systemically important banks, triggering a new financial crisis. Obviously, this cannot be allowed to occur and there can be little doubt that the central bank response will be to flood the financial system with yet more money.

Alternatively, the global banking system is too highly geared to survive an economic slump, which is an increasing risk in both the Eurozone and Japan and may well spread elsewhere. Remember that the dollar M3-to-gold ratio of 11 times in 1933 was enough to force a system reset; today the global ratio is nearly 40 times, on an admittedly flexible dollar. Again, the solution will be to flood the financial system with yet more money.

So either way, recovery or slump, price inflation or deflation, the current currency equilibrium with its dangerously high monetary gearing is unlikely to continue for long. And as if this is not enough the major emerging and Asian economies are proposing a monetary schism, breaking half the world's population away from the dollar. The yuan, rouble, rupee and all the other Asian and emerging-economy currencies involved may be able to trade between themselves without the dollar, but they will be unable to ditch it as a back-up monetary standard. They will still remain on a dollar standard.

This is why despite determined efforts to do without the dollar nobody in Asia has come close to proposing a realistic alternative. Let us hope the powers-that-be in the Shanghai Cooperation Organisation understand the important difference between a reserve currency used for trade settlement and a currency standard; otherwise by bringing into the open the fundamental question about the dollar's suitability as a monetary standard, they could end up undermining the dollar and with it an extremely fragile global monetary system.

Market Report: New silver fix procedure from today

Fri, 08/15/2014 - 05:23
I shall come to this important event later in this market report; but first, our customary look at this week's trading. From Monday through Wednesday the gold price found firm support at the $1305 level before gaining a few bucks to $1313 by close of play last night.

However, the underlying position is more positive than this limited move suggests, with the Swap category on Comex appearing to be in some difficulty. Swaps are mostly non-market making bullion banks. Their net short position on 5th August was 84,108 contracts, about 30,000 higher than their long term average, and while this may have reduced a little since then there is insufficient liquidity on Comex for them to close this collective net short without driving prices sharply higher. The chart below, which is from the dramatic knock-down in April 2013, shows net swaps are locked into a declining trend while the gold price stubbornly refuses to go any lower.

Obviously, Swaps trade most profitably on the bear tack in a falling market. This is visually represented in the chart by the blue line rising when the yellow line falls, and vice-versa. This clearly worked well until April this year when the gold price failed to respond to changes in the Swaps' net shorts.

The result is Swaps are now net short to an uncomfortable degree with a price that is no longer falling. They have a similar problem in silver and the technical situation is potentially very strong as can be seen in the Open Interest chart below.

Open interest is rallying strongly while the price remains held under $20. This indicates someone or some parties are sitting on the price refusing to let it go higher The next break above $20 could see the price go substantially better. With the new London fix from today, it looks like Canute's attempt to stop an incoming tide of buyers.

The new silver fix

Later on today the new daily silver fix regime will start. It will be run on the Chicago Mercantile Exchange's platform (the Comex people), and supervised by Thompson Reuters. For the first six months access to the fix for observers will be free, so we can all see how it works.

This is a welcome advance on the old silver fix, where bullion banks negotiate the price in secret. This should be positive in the longer-term, because market transparency tends to lead to wider institutional and public participation. We are a long way from a fully transparent market, but at least the veil of dealing secrecy is being lifted a little.

Imagine you are running a hedge fund. You don't deal in gold or silver because the physical market is too opaque. Now we have a visible auction process in silver, which you can watch on-line. You can monitor it for a week or two to get better a feel for how much money is required to move the price. It's not just you, everyone else is also getting interested. Now you can assess your dealing risk far better and will be prepared to deal. And you look forward to the gold market becoming more transparent as well.

To summarise, I believe we are seeing a very important change in bullion markets to the disadvantage of dealers who hide behind OTC opacity.

Next week

Monday.

Eurozone: Trade balance.
US: NAHB House Builders Survey.

Tuesday.

Japan: Leading Indicator (Final), Customs Cleared Trade.
UK: CPI, Input Prices, ONS House Prices, Output Prices.
US: Building Permits, CPI, CPI ex Food and Energy, Housing Starts.

Wednesday.

Japan: All-Industry Activity Index.
UK: CBI Distributive trades, CBI Industrial Trends.
US: Fed FOMC Minutes (July).

Thursday.

Eurozone: Flash Composite PMI, Flash manufacturing PMI, Flash Services PMI, Flash Consumer Sentiment.
UK: Public Borrowing, Retail Sales.
US: Initial Claims, Flash Manufacturing PMI, Existing Home Sales, Leading Indicator.

Friday.

US: Fed's Yellen speaks at Jackson Hole on labour markets.

Dealing Desk: Palladium’s the winner in another week of geo-political tension

Thu, 08/14/2014 - 12:46
Although it's been relatively quiet due to the holiday season, palladium has been the winner this week, while for GoldMoney customers, silver has also outshone its glittering yellow cousin.

Dealing Manager at the online precious metals trader, Kelly-Ann Kearsey, said: "Activity has been as you'd expect for this time of year, although it's picked up on last week and we've still got more buyers than sellers. Among our customers we've seen some significant silver purchases which have gone into the eastern vaults, most particularly Hong Kong, but muted interest for gold."

Geo-political concerns are undoubtedly one of the major influencers on the market at the moment. Despite the strength of the dollar the concerns have supported the gold price at the 1300 level.

"Platinum has slipped slightly, possibly as the South African mines come back on line and worries over stock levels recede. However Palladium has risen more than 4% in the week and this has been reflected by our customers" who have been net buyers of Palladium, but net sellers in Platinum. The tensions with one of the world's largest producers, Russia, including the increasing trade sanctions, could be behind its buying spree.

"Next week we have the Federal Reserve's Open Market Committee meeting, but there's not expected to be any major surprises to have much if any effect on the precious metals prices."

16:00 14/08/14: Week on week performance: Gold up 0.5% to $1,312.76; Silver fell 0.1% to $19.89; Platinum lost 0.7% to $1,458.10 while Palladium jumped 4.1% to $882.50.

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 over 22,000 customers worldwide and holds $1.4billion 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: @goldmoneyupdate

Markets: Keep calm and carry on

Fri, 08/08/2014 - 05:32
At the end of July global equity bull markets had a moment of doubt, falling three or four per cent. In the seven trading days up to 1st August the S&P500 fell 3.8%, and we are not out of the woods yet. At the same time the Russell 2000, an index of small-cap US companies fell an exceptional 9%, and more worryingly it looks like it has lost bullish momentum as shown in the chart below. This indicates a possible double-top formation in the making.

Meanwhile yield-spreads on junk bonds widened significantly, sending a signal that markets were reconsidering appropriate yields on risky bonds.

This is conventional analysis and the common backbone of most brokers' reports. Put simply, investment is now all about the trend and little else. You never have to value anything properly any more: just measure confidence. This approach to investing resonates with post-Keynesian economics and government planning. The expectations of the crowd, or its animal spirits, are now there to be managed. No longer is there the seemingly irrational behaviour of unfettered markets dominated by independent thinkers. Forward guidance is just the latest manifestation of this policy. It represents the triumph of economic management over the markets.

Central banks have for a long time subscribed to management of expectations. Initially it was setting interest rates to accelerate the growth of money and credit. Investors and market traders soon learned that interest rate policy is the most important factor in pricing everything. Out of credit cycles technical analysis evolved, which sought to identify trends and turning points for investment purposes.

Today this control goes much further because of two precedents: in 2001-02 the Fed under Alan Greenspan's chairmanship cut interest rates specifically to rescue the stock market out of its slump, and secondly the Fed's rescue of the banking system in the wake of the Lehman crisis extended direct intervention into all financial markets.

Both of these actions succeeded in their objectives. Ubiquitous intervention continues to this day, and is copied elsewhere. It is no accident that Spanish bond yields for example are priced as if Spain's sovereign debt is amongst the safest on the planet; and as if France's bond yields reflect a credible plan to repay its debt.

We have known for years that through intervention central banks have managed to control the prices of currencies, precious metals and government bonds; but there is increasing evidence of direct buying of other financial assets, including equities. The means for continual price management are there: there are central banks, exchange stabilisation funds, sovereign wealth funds and government-controlled pension funds, which between them have limitless buying-power.

Doubtless there is a growing band of central bankers who believe that with this control they have finally discovered Keynes's Holy Grail: the euthanasia of the rentier and his replacement by the state as the primary source of business capital. This being the case, last month's dip in the markets will turn out to be just that, because intervention will simply continue and if necessary be ramped up.

But in the process, all market risk is being transferred from bonds, equities and all other financial assets into currencies themselves; and it is the outcome of their purchasing power that will prove to be the final judgement in the debate of markets versus economic planning.

Market Report: Technically more sound

Fri, 08/08/2014 - 05:12
Precious metals periodically suffer from coordinated bear raids as the commercial shorts try to level their books. That appeared to be the case in recent weeks when the gold price was sold down from $1345 to $1280 last Friday. WTI crude was also sold down through the psychologically important $100 level to under $98. The weakness of energy prices and some of the base metals was the only question mark over an otherwise positive news background for gold and silver.

This week gold enjoyed a sharp recovery from the bear raid, which is illustrated in our first chart.

In shaking out weak holders, Comex open interest collapsed spectacularly to as low as 358,996 contracts on 1st August, the lowest level since May 2009. We won't be able to estimate how much specific categories of commercials were still short on that date until the Commitment of Traders report for last Tuesday is released later tonight; but the indications are swaps, mostly non-US bullion banks, still have collective short positions on the high side.

This is important, because the remaining bulls are obviously resolute, indicated by the sharp upturn in open interest on an equally sharp price gain to $1320 this morning. The signs elsewhere are not good for the shorts either, with physical demand in London appearing to have caught that market on the hop as well. In conclusion, it won't take much to squeeze the remaining shorts and drive the price materially higher.

The silver price has suffered this week. While gold rose 2.3% in a developing bear squeeze, silver actually fell by about 2%. This diverse performance is extremely unusual, and as can be seen in the chart below, silver's open interest has contracted significantly, with only a relatively muted recovery in the last few days.

There are strong signs the bear raid is now over. Firstly, open interest is approaching the late-June lows, from which a 15% rally in the price developed, as shown in the chart. This indicates that virtually all the weak bulls have sold or been stopped out, and so the swaps which are still short now risk being squeezed themselves. Secondly, on this low level of open interest there was exceptional volume on Tuesday when the price turned, and also very good volume on Wednesday, when the bears tried unsuccessfully to push the price lower still. Collectively this market information clearly indicates that the odds now favour a strong rally in the silver price.

Developing conditions between NATO and Russia over the Ukraine could well trigger or exacerbate bear squeeze conditions next week. Energy markets have yet to reflect these uncertainties, as well as the deteriorating situation in Northern Iraq.

Next week

Monday.

Japan: Consumer Confidence.

Tuesday.

Japan: Capacity Utilisation, Industrial Production, GDP.
Eurozone: ZEW (Economic Sentiment).
US: Budget Deficit.

Wednesday.

UK: Average Earnings, Claimant Count, ILO Unemployment Rate.
Eurozone: Industrial Production.
US: Retail Sales, Business Inventories.
Japan: Key Machinery orders, BoJ Minutes.

Thursday.

Eurozone: GDP (1st est.), HICP.
US: Import Price Index, Initial Claims.

Friday.

UK: GDP (2nd est.), Index of Services.
US: Empire State Survey, PPI, Net Long-Term TICS Flows, Capacity Utilisation, Industrial Production.

Dealing Desk: Ukraine tension puts shine on gold as a safe haven

Thu, 08/07/2014 - 13:48
Dealing Manager at the online precious metals trader, Kelly-Ann Kearsey, said that gold had been the best performer over the week.

The week saw a buy/sell ratio of 1.

The summer months tend to see a drop off in activity, but with geo-political tensions still high, there is still a fair amount of movement.

Kelly-Ann said: "Gold was boosted above $1,300 per ounce due to the escalation of tension in Ukraine, which has put pressure on global equities and increased the attraction of a safe haven investment.

"Earlier in the week we saw strong US figures which kept prices below the $1,300 mark, but as the tension between Russia and the West escalated the price pushed up."

"The ECB's announcement that interest rates will be kept low for an extended period of time had little affect on the markets."

"In the following week we expect to be focusing on figures due on China's industrial production, the Producer Price Index in the US and also the Retail Sales."

16:00 31/07/14: Week on week performance: Gold up 1.4% to $1,305.81; Silver fell 2.5% to $19.90; Platinum stayed almost steady, rising only 0.3% to $1,468.50 while Palladium dropped 2.6% to $847.47.

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 $1.4billion 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: @goldmoneyupdate

James Turk - Gold Is Now In Backwardation - What’s Next?

Mon, 08/04/2014 - 13:13
With continued uncertainty in major markets, James Turk tells King World News that the gold market has once again slipped into backwardation. Turk also discussed the delays in delivery times for large orders of physical gold as well as what investors should expect next.

Read the full interview at King World News.

USD FMQ carries on growing despite tapering

Fri, 08/01/2014 - 05:19
June's FMQ components have now been released by the St Louis Fed, and it stands at a record $13.132 trillion. As can be seen in the chart above, it is $5.48 trillion more than an extension of the pre-Lehman crisis exponential growth trend. At this point readers not familiar with the construction of FMQ and its purpose may wish to refer to the original paper, here.

It should be borne in mind that there may be seasonal factors at play, with dips in the growth rate discernable at this time of year in the past. So the slower growth rate of FMQ, up $44bn between April and June when it might have risen $150-200bn, is not necessarily due to tapering of QE3. If tapering was responsible for slowing growth in FMQ, we could expect to see some tightening in short-term interest rates. But as the chart of 3-month T-bill rates shows they have been in a declining trend since last November.

The chart confirms that tapering seems to be having little or no effect on money markets and therefore the growth rate of fiat currency.

Weakness in interest rates is also consistent with poor economic demand. This week the first estimate of Q2 GDP was released which came in at an annualised 4%, substantially above market estimates of 3.1%. This outturn conflicts sharply with the lack of any meaningful demand for money, until one looks at the underlying estimates.

Of this 4% increase, the change in real private inventories added 1.66%. In other words GDP based on goods and services actually sold was only 2.34%. That changes in unsold goods, which is what inventories represent, should be part of final consumption is a dubious proposition, but need not concern us here. According to the technical note accompanying the release, figures for inventories and durable goods (which showed an incredible rise of 14%) are estimated and not hard data, so are subject to future revision. On this basis, the surprise GDP figure is little more than a government econometrician's guess until the real data is available. Suspicions that these guesses err on the optimistic side are confirmed by the experience of the Q1 GDP figure, which was revised sharply downwards from first estimates when hard data eventually became available.

Whichever way we look at FMQ, it continues to expand at a frightening pace irrespective of the GDP outturn and its flaws. Furthermore, a look at the most recent Fed balance sheet confirms this view, showing that the 1st August figure will be considerably higher, unless there is an offsetting contraction of bank credit.

There is little sign of any such contraction. We can conclude from short-term market interest rates that the US economy is going nowhere fast, contrary to this week's GDP estimate, and that demand for credit continues to come from essentially financial activities. But given that GDP estimates turn out to be far too optimistic, what if the US economy stalls or even slumps? Won't that lead to a reversal of FMQ's growth trend?

This is essentially the argument of the deflationists. In a slump they expect a dash from credit into cash as asset prices tumble. The counterpart of credit is deposits, the major components of FMQ. And without Fed intervention FMQ would rapidly contract. But in the event of a slump the Fed cannot be expected to stand idly by without taking extraordinary measures: in the words of Mario Draghi at the ECB, whatever it takes.

Market Report: Like watching paint dry…

Fri, 08/01/2014 - 05:09
That was how it felt watching all markets this week until yesterday when they sprang into life. Gold fell from $1304 at the London opening last Monday to a low point of $1281 yesterday, down 1.8% on the week, while silver fell from $20.60 to $20.35, down only 1.2%. These moves were relatively small compared with action elsewhere. Here are the charts showing price and open interest for gold and silver on Comex.

Note how Open Interest in gold has collapsed by nearly 49,000 contracts since the peak on 10th July. This is principally due to the August contract winding down, with only a portion being rolled into December. Silver's OI on the other hand has held up relatively well, and its performance relative to gold has been remarkably strong.

In both cases the swaps category, which is mostly foreign banks, has recently accumulated large short positions. It will be interesting to see to what extent these positions have been closed down when the Commitment of Traders Figures for the second half of this week are released next Friday.

Precious metal markets weathered two important announcements on Wednesday. First, the Fed's FOMC completed its two-day meeting, and unexpectedly one committee member, Charles Plosser, dissented from the agreed statement in more hawkish tones. And secondly, the first estimate for Q2 GDP at 4% annualised was significantly higher than market expectations, as if to drive Mr Plosser's point home.

The impact of these developments was dramatic, sending the dollar higher against all currencies, but most notably the yen. Bond yields rose from recent lows, and equities fell sharply with a 300-point fall on the Dow yesterday. Less rationally commodity prices fell, with WTI crude falling through the $100 level to $98. So it is hardly surprising that gold and silver were marked down along with everything else.

Much of the fall was in US trading hours, so was a paper-driven gut reaction, and coincided with end-of-the-month book-squaring. It will be interesting to see if over the course of today physical demand for precious metals returns in London at these lower prices.

We may find in retrospect that this week was pivotal. China's equities were sharply higher (up over 7% since 21 July) on recent PBOC moves to ease liquidity strains, and the Japanese yen has started falling again having failed to break the ¥101 level. This may signal a return to the yen's bear market, which would be consistent with Japan's economic fundamentals. This being the case we can expect yen carry-trades to profitably finance global bull markets for the foreseeable future. It should also rekindle Japanese demand for gold.

Next week


Monday.

UK: Halifax House Price Index.
Eurozone: Sentix Indicator, PPI.

Tuesday.

Eurozone: Retail trade.
US: Factory orders, IBD Consumer Optimism, ISM Non-Manufacturing.

Wednesday.

Japan: Leading Indicator.
UK: Industrial Production, Manufacturing Production.
US: Trade Balance.

Thursday.

UK: BoE MPC Rate Decision.
Eurozone: ECB Deposit Rate.
US: Initial Claims, Consumer Credit.
Japan: Bank Lending Data, Current Account.

Friday.

UK: Construction Output, Trade Balance.
US: Non-Farm productivity, Unit Labour Costs, Wholesale Inventories.
Japan: BoJ MPC Overnight Rate.

Dealing Desk: Sunshine makes for a quiet market amid UK selling

Thu, 07/31/2014 - 13:14
It has been a quiet week among GoldMoney's 22,000 worldwide customers, with the summer holiday season kicking in.

There has been a low level of profit taking across all metals, and Dealing Manager at the online precious metals trader, Kelly-Ann Kearsey said it has been the UK vaults which have seen the most outflow, 'Although our buyer/seller ratio is still just slightly in favour of the buyers, all the metals have seen some sell off and there has been a continuation of the west to east flow that we have experienced for the past 18 months. The UK vaults saw the most selling, with Singapore again recording the biggest gains.

'In the wider market gold has stayed weaker, below the 1300 level, as upbeat economic figures continue to come from the USA showing the recovery is well underway. We've also seen the resulting gains from the US dollar against other major currencies.

'The geopolitical tensions from the Middle east and Ukraine are continuing to encourage some buyers into gold as a safe haven, but generally the holiday season has made for a light week's trading amid an improving worldwide economic outlook.

'Tomorrow and next week we will see some more economic data out from the USA which could reinforce the dollar's strength, and we're expecting another quiet week on the precious metals markets as is normal for this time of year with investors off enjoying the sunshine – both economic and on the beaches.'

16:00 31/07/14: Week on week performance: Gold down 0.3% to $1,286.81; Silver also fell just 0.3% to $20.45; Platinum stayed almost steady, rising only 0.2% to $1,465.24 while Palladium edged up 0.9% to $875.22.


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 $1.4billion 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: @goldmoneyupdate

Dealing Desk: Sunshine makes for a quiet market amid UK selling

Thu, 07/31/2014 - 13:14
It has been a quiet week among GoldMoney's 22,000 worldwide customers, with the summer holiday season kicking in.

There has been a low level of profit taking across all metals, and Dealing Manager at the online precious metals trader, Kelly-Ann Kearsey said it has been the UK vaults which have seen the most outflow, 'Although our buyer/seller ratio is still just slightly in favour of the buyers, all the metals have seen some sell off and there has been a continuation of the west to east flow that we have experienced for the past 18 months. The UK vaults saw the most selling, with Singapore again recording the biggest gains.

'In the wider market gold has stayed weaker, below the 1300 level, as upbeat economic figures continue to come from the USA showing the recovery is well underway. We've also seen the resulting gains from the US dollar against other major currencies.

'The geopolitical tensions from the Middle east and Ukraine are continuing to encourage some buyers into gold as a safe haven, but generally the holiday season has made for a light week's trading amid an improving worldwide economic outlook.

'Tomorrow and next week we will see some more economic data out from the USA which could reinforce the dollar's strength, and we're expecting another quiet week on the precious metals markets as is normal for this time of year with investors off enjoying the sunshine – both economic and on the beaches.'

16:00 31/07/14: Week on week performance: Gold down 0.3% to $1,286.81; Silver also fell just 0.3% to $20.45; Platinum stayed almost steady, rising only 0.2% to $1,465.24 while Palladium edged up 0.9% to $875.22.


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 $1.4billion 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: @goldmoneyupdate

James Turk - The Money Changer

Thu, 07/31/2014 - 04:11
James Turk, Founder and Director of GoldMoney is interviewed by Franklin Sanders and The Money Changer.

Read the full interview here

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