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Friday, 14 December 2012

Chinese assault Gold markets

Kitco reports that the Chinese have forced down the price of gold on the markets and following the price today has made interesting reading, the price plummeted all the way down to the London PM fix at $1692 before rebounding sharply once the fix was in to back over $1700 then ending the day at $1696. The interesting thing will be to see how much physical metal was purchased today from the LBMA.

It was a crazy day for bullion sales. I personally had my entire inventory purchased, with additional orders placed and booked. A quick tour of the jewellers and antique dealers revealed that gold coins for sale are near to non-existent.

It is refreshing to see that many people in Jersey are heeding the warning signs of the impending end of the Anglo-Saxon domination of the world. The number one present this Christmas is going to be gold and silver bullion and coins.

There is an increasing disconnect between physical sales and market prices however, physical sales continue to rise whilst the market price continues to be held at around $1,700.

The United States confirmed that it is going to continue with zero interest rates for the next three year; this on a day where it was confirmed that the US has now outstripped Stalin's Russia in terms of the percentage of people incarcerated and that the government now plans to place microphones on public transportation to record conversations.

The outlook on the UK economy was cut from Neutral to Negative suggesting that a credit downgrade is coming which will bring in its wake increased interest rates or massive quantative easing, either of which is terrible for those invested in property in the UK and those areas which use the pound such as Jersey.

In EULand the news of the appointment of a bank supervisor to oversee the Eurozone banks with a market capitalisation of over $30 billion, which leaves most of Germany's banks still regulated by Germany, but other nations banks overseen by Germany. This clears the way to a central European bank, overseen by... yep, you guessed it, Germany.

This is not necessarily a bad thing, Germany having had its experience of hyperinflation where the cost of one egg reached 4 billion marks has a much more traditional approach to expenditure... don't buy it until you can afford it. With its recent requests for the repatriation of its US held gold, it certainly looks set to be a potential future world economic hegemon. All it would take is a war between China and the US and such a future would be the likely outcome.

If the future for the UK (and thus Jersey) is a choice between living with the increasingly fascist United States or with the Germans; then I am going to start learning to speak German.