The Financial Times: Learn From German Central Bank and “Demand Physical Gold”

Today’s AM fix was USD 1,270.00, EUR 927.82 and GBP 767.14 per ounce.
Friday’s AM fix was USD 1,259.25, EUR 920.44 and GBP 757.40 per ounce.
 

Gold rose $0.56 or 0% on Friday to $1,264.51/oz. Silver slipped 0.20 or 1% to $19.74/oz.

Gold surged to its highest level in two months on the open in Asia overnight. Gold was steady at $1,268.60 late morning, after earlier hitting a two-month high of $1,278.01. Other precious metals also edged higher.

Safe haven buying was evident as equities fell on worries about capital outflows from emerging economies, currency crises and macroeconomic and geopolitical risk.

Asian and European shares dived as emerging markets remained under pressure due to concerns that the U.S. Federal Reserve may discontinue its ultra loose monetary policies and unease about the shadow banking system and credit conditions in China. This is raising the possibility of a sharper economic slowdown.

Risks posed to depositor’s cash were seen in the UK after HSBC imposed cash withdrawal limits on clients and Lloyds ATM machines and debit cards experienced difficulties.

The Financial Times has told investors that they should act like the German Bundesbank and “demand physical gold” and warned that gold price “manipulation” could end “catastrophically“.

“There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults?  As has been remarked here before, forecasting the price is for mugs and bugs.

But one day the ties that bind this pixelated gold may break, with potentially catastrophic results. So if you fancy gold at today’s depressed price, learn from Buba and demand delivery.”

Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide – The Essential Guide To Storing Gold In Singapore


    



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