Moves afoot could bring gold confiscation closer

Gold Today –New York closed at $1,190.90 on the 27th January after closing at $1,189.10 on the 26th January. London opened at $1,192.00 today.

 Overall the dollar was mixed against global currencies early today. Before London’s opening:

         The $: € was unchanged at $1.0696: €1 from $1.0696: €1 Friday.

         The Dollar index was slightly stronger at 100.55 from 100.50 Friday. 

         The Yen was slightly stronger at 114.86:$1 from Friday’s 114.99 against the dollar. 

         The Yuan was unchanged at 6.8772: $1, from 6.8772: $1, Friday. 

         The Pound Sterling was weaker at $1.2545: £1 from Friday’s $1.2565: £1.

 Yuan Gold Fix

Trade Date Contract Benchmark Price AM 1 gm Benchmark Price PM 1 gm
      2017    1    30

     2017    1    27

      2017    1    26










$ equivalent 1oz @  $1: 6.8772

      $1: 6.8772

$1: 6.8755







Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle Eat eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

 Shanghai is closed today until Friday for the Lunar New Year celebrations.

LBMA price setting:  The LBMA gold price was set today at $1,189.85 up from Friday’s $1,184.20.  

The gold price in the euro was set lower at €1,115.34 after Friday’s €1,107.45.

Ahead of the opening of New York the gold price was trading at $1,191.00 and in the euro at €1,116.42.  At the same time, the silver price was trading at $17.09. 

Silver Today –Silver closed at $17.12 at New York’s close yesterday against $16.80 on the 26th January. 

Price Drivers

On Friday in New York, there were sales of gold from the Gold Trust of 0.45 of a tonne, not enough to affect the gold price, which rose on the first day of the Lunar New Year, much to our surprise, as we saw the day as opportune for the bears to strike. Instead, bullish positions on COMEX rose as did the price of gold.

With four more days of the absence from the market in Shanghai, it is clear that with prices pulling back now, when the Chinese do return we see them jumping in to get these prices.

There are proposals being put forward in the European Commission to further control transactions in cash. These are being put forward supposedly to control or prevent terrorism. A ‘by-product’ of such a proposal would be total control of everybody’s money through the banks. All these would then be under the watchful eyes of governments [this is part of “Big Brother is watching you”].

We must recognize that gold would be the next to come into that scheme of things, as it is, likewise, capable of being used  in the same way as cash. This brings the prospect of gold confiscation one step closer!  With such proposals now on the table, not only in smaller countries but in the E.U. itself one can no longer ignore the prospect of a future confiscation of your gold.

Gold ETFs – Friday, in New York, there were no sales or purchases of gold from or into the SPDR gold ETF but there was a sale of 0.45 of a tonne from the Gold Trust, leaving their respective holdings at 799.070 tonnes and 198.30 tonnes. 

Since January 4th 2016, 196.49tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust. 

 Julian D.W. Phillips | | StockBridge Management Alliance 

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