Central Banks ‘Vote For Gold’

Central Banks ‘Vote For Gold’ Due To Sovereign And Currency Concerns

Today’s AM fix was USD 1,327.75, EUR 998.76 and GBP 861.73 per ounce.
Yesterday’s AM fix was USD 1,312.00, EUR 994.92 and GBP 857.63 per ounce.

Gold climbed $11.60 or 0.88% yesterday and closed at $1,331.50/oz.
Silver rose $0.04 or 0.2% and closed at $20.20.

Gold is 8.4% higher in July and set for the best month since January 2012 as lower prices lead to increased demand.

"You have to choose, as a voter, between trusting to the natural stability of gold and the natural stability and intelligence of the members of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold."

The above quotation from GB Shaw who was born on this day July 26, in 1856, is ringing true during these uncertain political and economic times.

Gold is on course for its third week of gains, buoyed by a weak dollar, no definite end to quantitative easing and continuing ultra loose monetary policies. Central bank gold buying is also supporting gold.

Premiums in India are $20 per ounce over London prices as demand outstrips government restricted supply before the festival season on the subcontinent.
Central banks remained net buyers of gold last month as seen in the IMF data released overnight.

China does not report to the IMF and there are strong grounds for believing that China continues to accumulate gold quietly and without declaring ... for now.

When China does announce its expected increase in holdings it could be of a significant amount that could reignite gold's secular bull market.

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