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Today’s AM fix was USD 1,773.75, EUR 1,361.28, GBP 1,089.19 per ounce.
Yesterday’s AM fix was USD 1,760.00, EUR 1,360.33 and GBP 1,088.03 per
ounce.
Silver is trading at $34.71/oz,
€26.84/oz and £21.42/oz. Platinum is
trading at $1,638.50/oz, palladium at $670.30/oz and rhodium at $1,250/oz.
Gold fell $2.10 or 0.12% in New York yesterday and
closed at $1,768.40. Silver dropped to $34.084 in London, but rallied back
higher later in the session and finished with a gain of 0.03%.
 
James Grant Interview on CNBC
Gold is slightly higher today and is being supported by
investor concerns not just about ‘stimulus’ but about “open
ended” QE or ‘QE to infinity’.
Gold and silver have this week consolidated on their
recent sharp gains which is a healthy development as
there were concerns that the markets were getting ahead of themselves.
Currency Ranked Returns - (Bloomberg)
Gold has been hovering near $1,775/oz
a 6 ½ month high seen after the US Federal Reserve launched QE3 and
vowed to keep borrowing costs low until 2015, fuelling global demand for
gold, which benefits from a low and negative interest rate environment.
Deutsche Bank has reported that their high net worth
private clients have expressed an increasing interest in owning gold in order
to protect their wealth from the growing risk of inflation (see Newswire).
Thursday’s US manufacturing figures showed the
sector suffered its weakest quarter in 3 years.
Gold Tick (17/09/2012-Today) - Bloomberg
The recent renewed appetite for gold and silver has
shot the precious metal backed funds to their highest levels in a year. SPDR
Gold Trust, the world's largest gold ETF, said its holdings had hit 1,308.41 tonnes. Holdings in iShares
Silver Trust, the world's biggest silver ETF, climbed to an 11-month high of
9,940.66 tonnes.
XAU/EUR Exchange Rate Daily, 17/09/12-Today -
(Bloomberg)
Gold is consolidating near record highs in the euro and
is less than 1% below the record intraday high from just over a year ago on
September 9th 2011.
One of the most astute financial analysts in the world,
Jim Grant, founder of highly respected Grant's Interest Rate Observer, was
asked by Maria Bartiromo on CNBC yesterday
“how high can gold go”? Grant responded that "there is no
telling."
Grant was asked about the stock market and where to
invest today and asked if “you want to get in front of this
train?”
He responded by advocating “security
analysis” and said that he thinks that that is “where an
investment in gold and silver comes in”.
Grant said the following:
“Central banks around the world are bound and
determined -- either through actions or words to debase their currency.
They're telling us”
XAU/GBP Exchange Rate Daily, 17/09/12-Today -
(Bloomberg)
When asked how high gold could go, Grant astutely noted
that:
“The nice thing about gold, it has no PE
multiple. There’s no telling.
Gold is a speculative -- it earns no yields, gold is a
speculation on an anticipated macro economic
outcome. That macro economic outcome being the
systematic debasement of currencies by the central banks.
They've done QE 3, right? The economy appears not to be
in the best of health. Why wouldn't they do QE 4? What intellectual argument
do they have against doing it again and again and again?
That's one of the risks, right? Well, it's open ended
already. Maybe they'd need it, because we know it's open ended. They can save
the paper in the press release”.
With regard to hard assets such real estate and gold,
Grant said:
“There is an argument to be made that you want to
be buying hard assets like gold, like real estate ... that's not a bad way to
hedge against the currency”.
The interview ends on a funny but sadly telling note
when the “Money Honey” Bartiromo says
that she knows that Federal Reserve Chairman, “Bernanke knows you have
been so critical. What is his answer to you, when you raise these
points?”
James Grant said:
“We don't talk any more.”
Ron Paul named Grant as his likely candidate for
Chairman of the Federal Reserve to replace Ben Bernanke whose term expires in
2014.
The interview is a must watch and can be seen here.
Cross Currency Table – (Bloomberg)
NEWSWIRE
(Bloomberg) -- Indian Physical Gold Demand ‘Encouraging of Late,’
UBS Says
Indian demand for physical gold has been “encouraging of late”
with flows this week heading for the biggest since mid-July, UBS AG said in a
report.
“Volumes aren’t huge, but it’s clear
that demand is quick to emerge on local price pullbacks,” the bank
said.
(Bloomberg) -- Russian Gold Holdings Fall to 30 Million
Troy Ounces in August
Russia’s central bank decreased its gold holdings to 30.0 million troy
ounces as of Sept. 1, from 30.1 million troy ounces a month earlier,
according to a statement published on its website yesterday.
The stockpile was valued at $49.7 billion at the end of
last month, Bank Rossii said in the statement.
(Bloomberg) -- Gold Targeted by Wealthy Amid Stimulus,
Deutsche Bank Unit Says
More so-called high-net-worth individuals are seeking physical gold to protect
their wealth from the risk of inflation after central banks boosted stimulus,
according to Deutsche Bank AG’s asset and wealth-management unit.
Mark Smallwood, head of Asia-Pacific wealth-management
solutions, commented in an interview from Guilin, China, yesterday with gold
trading near the highest level since February after Japan’s central
bank followed the U.S. in expanding asset purchases to boost economic growth.
Spot gold was at $1,770.90 an ounce today.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
NEWS
Gold crawls up as stimulus supports outlook
- Reuters
Gold Approaches Seven-Month High as Data Back Case
for Stimulus – Business Week
Gold Bulls Extend Streak as Prices Jump on Stimulus
– Business Week
'Golden cross' indicates gold momentum turning more
bullish - Reuters
COMMENTARY
Video - Jim Grant: "We Are Labrats
In The Financial Markets" – Yahoo Finance
Money printing has only allowed governments to duck
their problems – The Telegraph
The iKrug - Apple IPhone
and Krugman – Zero Hedge
Dr Doom predicts a housing disaster – and he's
got history on his side – The Independent
Only Way They Can Stop This Is Bring Out A New
Currency – King World News
Mark
O’Byrne
Goldcore
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