Another Monday morning gold price spike

The gold price jumped up again this (Asian Monday) morning.  It is as though buy orders accumulated before the market opens force up demand.  Sell orders seem only to come in response to, and after, that buying demand.

On Warren Buffet’s view on gold

Summary

Warren Buffet prefers to invest in income producing assets rather than non-producing assets such as gold.  He claims that just about the only reason people buy gold is because of fear.  But beneath Buffet’s case against gold might lie a motive to support the US dollar.  By discouraging investment in gold, Buffet supports the US dollar. 

Difficulty of imposing democracy on Islamic cultures finally acknowledged

The notion that people should be given power to make their own laws has always conflicted dangerously, and at the most fundamental level, with the Islamic knowledge that all law comes from Allah, and from Allah alone.

Euro vulnerability increases again

See "Berlin is running out of allies in euro crisis" and "Euro's fate hinges on austerity in Madrid" from Der Spiegel, which I acknowledge.

Gold metal partially replaces US dollar for international trade

The west's strategy of short selling gold into Chinese hands is "novel" and "courageous".  China's plans to pay gold, and to barter other produce, to purchase Iranian oil follows India's similar intent.  The increasing denomination of international trade in gold and barter produce instead of the US dollar global reserve currency is significant.

How the gold price is manipulated, and long term implications

Harvey Organ explains in detail how gold trading in London and on the COMEX determines the gold price.

China's global currency role expands

The Chinese yuan's role as an international currency continues to grow, offering an alternative to the US dollar global reserve currency.  UK institutions seek to make London a yuan trading and investment hub, according to this Bloomberg article, which I acknowledge.

Syria offers to sell gold at discount

Syria is offering to sell their gold reserves at a 15% discount, according to these News24 and Reuters reports, which I acknowledge.

US taxpayers cover unquantifiably large derivatives risk

Avery Goodman has written an excellent explanation of the US derivatives situation, in which he argues that the astronomical value of US issued derivatives has created a frightening concentration of risk.  That is why large scale quantitative easing (money printing) will continue indefinitely, causing high inflation.

Banks "too big to fail" have grown even bigger

The five largest US banks, guaranteed government support for being "too big to fail", have grown significantly larger.  Almost no progress has been made on reducing the financial system's exposure to banks which are "too big to fail".

Gold's relationship with money, continued (3)

"Gold returning to the mainstream - part three" follows the two earlier articles:

Gold's relationship with money, continued

"Gold returning to the mainstream - part two" follows "How gold can be returned to the mainstream monetary system - part one", by Julian Phillips.

Renminbi might replace Sterling

The London Metal Exchange is considering allowing settlement in renminbi, according the Financial Times.

Greek town develops bartering system without euro

See:  Greek town develops bartering system without euro.

Gold's relationship with money

I found this article interesting: "How gold can be returned to the mainstream monetary system - part one", for which I acknowledge Julian Phillips.

Singapore to remove gold tax

Singapore will exempt gold, silver and platinum from their 7% goods and services tax from October, 2012.  Removal of the tax will have a number of consequences.

Gold becomes legal tender

Gold has become legal tender in South Carolina, joining Utah and other states in the USA who have legalised gold's use as money in parallel with the US dollar, according to Wealth Wire.

Gold price spike again

The gold price spiked up suddenly, again, shortly after 22:00 GMT = 8:00am AEDT (Sydney), Monday morning.  See Kitco's chart below.

Gold price test

For those watching the price of gold, gold is approaching the long term upwards sloping trend line, shown below.  It is likely that Mainland China has a national policy to accumulate gold, as western interests sell.

Germany should repatriate gold from USA, and buy more gold - Peter Schiff

Peter Shiff argues that if he were head of the German Central Bank (Deutsche Bundesbank) he would have all of Germany's gold, 66% of which is currently held in the USA, repatriated to Germany, and, that he would have Germany exchange their US dollar reserves for gold bought on the free market.

Greece's third bailout defies reality

The Greek prime minister Lucas Papademos has announced that Greece might require a third bailout. [1, 2]