There Is More to Gold than Mere Capital Appreciation: John Hathaway

John Hathaway, senior managing director of Tocqueville Asset Management, does not particularly trust banks to keep stores of physical gold safe and segregated. Indeed, he considers his black lab Jake a better watchdog than the SEC. That is why he favors the SmartMetals program from Hard Assets Alliance, a new service launched in . . . → Read More: There Is More to Gold than Mere Capital Appreciation: John Hathaway

Student of the physical market - demand doesn't drive the gold price

Eric Sprott and David Baker has a new article out discussing central bank buying of gold and particularly China. I agree with his conclusion that this is an important demand side shift in the market but then Sprott plays it up way too much with statements like:

“… there isn’t a physical market on . . . → Read More: Student of the physical market – demand doesn’t drive the gold price

Tungsten Fake Gold Bars

Been busy at work and home, hence the lack of posts. I’ve recently posted on Tungsten fake gold bars for those who may not have seen it. I’ve posted before on this issue here and here.

Coincidentaly, the Mint has recently bought a “Panalytical wavelength dispersive X-Ray Fluorescence (XRF) instrument” for $470,000. Before I . . . → Read More: Tungsten Fake Gold Bars

Survivor Bias and TBTF Tyranny

London Banker “has been a central banker and securities markets regulator during a varied and interesting career in global financial markets” and is a very credible commentator IMO. From his latest:

“Perhaps gold is being used as collateral for margin and cash liquidity, sold by counterparties to bring the price lower, leading to margin . . . → Read More: Survivor Bias and TBTF Tyranny

FOFOA, New Vaults and physical/paper price

A couple of weeks ago FOFOA made the following statement:

Do you remember the stories about HSBC clearing out space in their vaults, or JP Morgan building new vaults? What could be the explanation for this if the aggregate gold stock is so stable? Then it occurred to me that unallocated storage is much . . . → Read More: FOFOA, New Vaults and physical/paper price

Negative Gold Lease Rates (again)

If Tom from Metal Augmentor keeps on putting out great stuff like this post on negative lease rates, then I’ll be out of a (blogging) job.

It is heavy going but a comprehensive discussion of the issue with a dramatic speculation that “The selective collateral nature of the tri-party format may force bullion banks . . . → Read More: Negative Gold Lease Rates (again)

Negative Lease Rates

Very good two page analysis of negative lease rates by Pollitt & Co’s John Paul Koning, including central bank activity in this market. Quote:

What sort of “non-banks” might be supplying leased gold to the market-making banks at these extremely negative rates? As we already pointed out, central banks seem willing to lend only . . . → Read More: Negative Lease Rates

"Mexico Mike" Kachanovsky: Gold and Silver Producers Due for Big Upside

Mike Kachanovsky, known as “Mexico Mike,” doesn’t follow the so-called smart money. Founder of the website, Mexico Mike believes mainstream commentators are leading investors astray by insisting that it is too late to get into mining stocks and precious metals. In this exclusive interview with The Gold Report, Mexico Mike explains why . . . → Read More: Mike Kachanovsky: Gold and Silver Producers Due for Big Upside

Physical v Paper & PAGE discussion on FOFOA

Below is a cut and paste of some of my comments on this issue at FOFOA’s latest post. Also see here for some comments on the GBI system which was the focus of the FOFOA post, in particular the “fully insured” claim, which many operators imply they have. mortymer: “You will maybe find this . . . → Read More: Physical vs. Paper & PAGE discussion on FOFOA

The Mint is humming

Nigel Moffatt, Treasurer of the Perth Mint, breaks from his leash with some really bullish statements in an interview with The Australian newspaper:

He said he could see no end to the gold boom.

“If you’re in the US or Europe, what on earth are you going to put your money into?” he said. . . . → Read More: The Mint is humming