“Wave Of Disaster” Threatens U.S. Mortgage Market; OECD & IMF Warn UK

Wednesday, November 27, 2013
By Paul Martin

Gold Core
Wednesday, 27 November 2013

The German regulator has joined the British Financial Regulator and is opening up an examination of the gold and silver price ‘setting’ at banks.

The German financial markets regulator is scrutinizing gold and silver price setting operations at individual banks alongside other benchmark processes including Libor and Euribor, Bafin spokesman Ben Fischer told media. Bafin declined to elaborate on the status of the investigation or the banks involved.

Despite the very poor sentiment after recent price falls, gold’s fundamentals are actually quite sound.

Global physical demand is set to be very high again this year and may even reach a new record, despite the 25% price fall.

This is especially the case, as Chinese demand is set to be a new record this year despite the recent slight decline in demand. China’s net imports of gold from Hong Kong alone in October reached the second-highest level on record last month. This does not include direct imports from Australia, Africa, Vietnam and other countries.

Indeed, Chinese demand this year looks set to be a new record for the highest gold demand from one country in one year ever. It is important to look at the aggregate annual demand figures rather than the ebb and flows of weekly and monthly data which can mislead.

Momentum and technical traders are dominant at the moment and with the short term trend down, gold may incur further losses in the short term.

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