April 15, 2013

April 15, 2013 6:42 pm TheUnhivedMind 2 Comments

15 April 2013 Last updated at 15:48

http://www.bbc.co.uk/news/business-22151474

Gold price falls to two-year low of $1,395 an ounce

Gold has fallen 9.1% to $1,395 an ounce, its lowest level in two years, as fears of high inflation recede.

Investors typically buy gold to protect against inflation, which erodes the value of cash investments.

But investors are now expecting the US central bank, the Federal Reserve, to tighten monetary policy by stopping its quantitative easing (QE) programme.

Fears of falling global demand also undermined the price of gold. Other commodity prices fell back too.

China announced on Monday that its economy grew 7.7% in the first quarter, lower than forecasts and below the pace of growth of recent years.

Oil was also affected by reports of falling demand, with Brent crude falling 3% to a nine-month low of $101 a barrel.

Silver was down by 10% at one point, while copper fell to its lowest level in a year and a half at $7,085 a tonne, and aluminium sank to a three-and-a-half year low.

Cyprus’s announcement last week that it was planning to sell most of its gold reserves coincided with the start of gold’s decline.

Some fear that other weak eurozone economies, such as Italy and Spain, will follow Cyprus’s lead and sell some of their gold stocks, adding further supply to weakening demand.

Dominic Schnider, an analyst at UBS Wealth Management, said it might not have been the eurozone that triggered the mass flight out of gold: “What we now see is panic selling, perhaps triggered by the Fed’s stimulus view. The Fed has given the signal that there’s a possibility to reduce QE and that took a lot of trust out of gold.

“And people recognise that an environment where you have no inflation is a powerful driver to get out of the metal.”

‘Bleak’

The price of gold has had a remarkable run in recent years, hitting a record high of $1,800.

Another drag on prices has come from India, the world’s biggest buyer of gold bullion, which introduced a 50% import tax that has triggered a 24% fall in the amount of gold brought into the country in the first quarter of this year.

Mohit Kamboj, president of the Bombay Bullion Association, suggested prices may have further to fall: “With more and more countries reducing stocks, the future of gold seems bleak.”

The fall means Cyprus is likely to raise less than the 400m euros ($525m) it hoped for when it announced it was selling the bulk of its gold reserve.

Gold mining company shares fell sharply as a result, with Randgold down 10% on the London stock exchange and Fresnillo down by 14% at noon.

David Govett, head of precious metals at Marex Spectron in London, said there was a mass flight out of gold: “We have seen massive liquidation from all quarters… This is a market that has only got one thing on its mind… get me out.”

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TheUnhivedMind on April 15, 2013 at 7:01 pm said:

Are people really that stupid enough to believe this article and its complete and utter nonsense? So the BBC (British Intelligence whore) wants us to believe that gold prices have dropped because raped Cyprus is selling some of its gold reserves? Why might Cyprus sell off some of its gold reserves and I emphasis might? To pay off a bail-out by international crooked lenders (The Worshipful Company of Mercers) based on fictional derivatives debt creation to steal wealth and enslave persons. Its absolutely amazing how they can try to blame the drop in gold on this bank theft of Cyprus.

Next we see the pathetic claim about the Federal Reserve ramping down its quantitative easing programme. Even when the Fed had a less visible QE program the gold stayed high and for good reason. They act as if there is no inflation but look around you at the prices of everything and see how much debt-instrument change you have in your pocket after having to purchase those products in the supermarket. Not the mention how the Bank of Japan is the king dick for funneling monopoly debt-instrument currency for the Federal Reserve but no one talks about this. Hows about how the Fed was using the Bank of Japan to funnel it funds straight after the nuclear disaster at Fukushima. The Federal Reserve was taking disaster currency from the Bank of Japan rather than having an open quantitative easing program. When in trouble the Bank of Japan is where they run. The Bank of Japan is keeping the Federal Reserve and the Eurozone going today.

What we have here is a big manipulation of Gold prices right at a time when the bankers are desperately buying up as much gold as they can. Just at a time when they might be able to get even more gold off Cyprus now. Hows about how the CIA/DVD are buying up massive amounts of Thai gold through the Liechtensteinische Landesbank in rich Lichenstein and UBS AG in Switzerland using Swiss banker and DVD agent, Josef Ackermann working for Nazi SS Officer, George H.W Bush the head of the Deutsche Verteidigungs Dienst. Hows about how the DVD have been raiding alloted gold accounts in Switzerland.

Not only do they want to be able to buy up a load of gold on the cheap, they also want to put you off owning gold and going long. Do not worry about any drops, just see it as an opportunity to buy more and also that these swines want to buy more. They hope idiots run out of the gold market and can be stung when they collapse the economy and you are left with toilet paper promissory IOU debt-instrument notes. Ask yourself why they are wanting so much gold right now. Remember too that the International Monetary Fund can still purchase gold within the United States for the face value $50 a troy ounce using a loophole. Internationally they have to pay the going rate which they manipulate (namely JP Morgan). The IMF is controlled by the Exchange Stabilization Fund managed by the U.S. Treasury working for The Worshipful Company of Mercers of the pirates of the Livery.

-= The Unhived Mind

TheUnhivedMind on April 15, 2013 at 7:01 pm said:

http://www.bbc.co.uk/news/business-11899862

(Noon): A sharp fall in mining shares pulled the FTSE 100 down by 1%, after Chinese growth figures came in weaker than expected and metals prices fell.

The continued fall in the gold price hit gold miners, with Fresnillo down 14% and Randgold dropping 10%.

China is the world’s largest consumer of metals, so news that first-quarter growth had slowed to 7.7% hit mining shares fell across the board.

The FTSE 100 index was down 69.19 points, or 1.1%, at 6,315.20.

Shares in United Utilities rose 2.9% after a report at the weekend said it was taking action to defend itself against a possible bid approach.

The Sunday Times reported that the company had hired Goldman Sachs to help bolster its defences against any takeover move.

Outside the FTSE 100, shares in Betfair jumped 10% to 770.50p after private equity firm CVC Capital said it had held talks about making a takeover offer for the online betting exchange.

Meanwhile, bookmaker Ladbrokes saw its shares drop by 7.6% after it said weak first-quarter trading meant that its full-year profits were now likely “to be at the bottom” of analysts’ forecasts.

On the currency markets, the pound fell 0.1% against the dollar to $1.5330, but was up 0.2% against the euro at 1.1726 euros.