Should U.S. foreign-exchange policy spur a global currency conflict, Deutsche Bank AG sees gold as the ultimate victor.
As global economic policy uncertainty has skyrocketed this year, gold prices have accelerated dramatically reflecting their value, as Kyle Bass put so eloquently, as a “hedge against the idiocy of the political cycle.”
And, indeed, one look at the chart below – showing almost $13 trillion of negative-yielding debt globally – suggests the “idiocy” is as great as it has ever been as Einsteinian insanity continues to build as central bankers world-wide double-down on more of what hasn’t worked to build a recovery that is sustainable without the global liquidity spigot being wide open.
The Tanzanian government has notified embattled Acacia Mining (LON:ACA) that it would be conducting an inspection of its North Mara mine, the gold producer’s main operation in the country and the only one of the three it owns that remains fully operational.
“The letter states that export permits for gold shipments from North Mara will be issued following completion of this inspection,” Acacia said in a statement.
It would conduct an inspection at North Mara, Acacia’s main operation in the country and the only one of the three its owns that remains fully operational.The move is the latest sign of increasing government pressure on the gold miner, which faces an imminent takeover by its majority shareholder, Canada’s Barrick Gold (TSX:ABX) (NYSE:GOLD).
Japan’s Ministry of Energy, Trade and Industry accepted Japan Gold’s (TSXV: JG) proposal to expand its Ikutahara project, located in northern Hokkaido.
Japan Gold says it is the first foreign exploration company to focus entirely on gold and copper-gold opportunities in Japan
In detail, the ministry approved the Canadian company’s application for four additional prospecting rights that total 1,399 hectares and extend the northern boundary of Ikutahara proximal to historic workings at the Toge Hill, Asada Ridge, and Akebono prospects.
The LBMA said gold had an amihud illiquidity ratio — a tool used to gauge liquidity — of 0.000018, compared to the EBA’s scores of 0.059 for government bonds and 0.188 for corporate bonds.
A reading closer to zero signifies greater liquidity.
Gold will likely shine over the next six to 12 months as heightened risk meets easy money — this according to the World Gold Council’s mid-year outlook. Gold ranked as one of the best-performing assets through the first half of 2019, beaten only by stock markets – which have also been supported by the turn
Authored by Joakim Book via The American Institute for Economic Research,
A gold standard is a monetary regime where the monetary unit, the base money of the banking system — the outside money or the high-powered money — consists of a defined amount of gold. Gold standards can come in all manners and versions and with particular institutional and historical quirks that affect their operations. The key characteristic that unites them is that an economy’s underlying money is ultimately based on an amount of gold.
Global holdings in gold-backed ETFs and similar products grew by 127 tonnes (equivalent to $5.5 billion in inflows) in June, up to 2,548 tonnes –- the largest monthly increase in seven years –- according to data compiled by the World Gold Council, on the back of heightened geopolitical uncertainty causing central banks around the world to go on a gold hunt.
The result was that gold price moved to a six-year high, breaking over the $1,400/oz threshold last month.