In what future generations will likely see as a major, potentially catastrophic blunder of monetary policy, the West and particularly the City of London continues to hemorrhage huge volumes of gold which is flowing Eastwards to Singapore, India and China from London via Switzerland.
In this interview with The Gold Report, Ecclestone explains that canny juniors are choosing past-producing properties, which boast dependable resources estimated by majors and already existing infrastructure. And he names two current gold producers he believes are woefully undervalued.
Tapering and tightening are rightly interpreted as backing out from two distinct expansionary tools. Even though those two tools have similar effects on the market interest rates, they are not viewed as equivalent.
The certain fact is that Yellen is ready to continue with Fed’s expansionary operations. Therefore no tapering on the horizon so far. More money printing means greater chance for gold price to rise in the coming years.
London dealing in gold saw prices retreat toward last night's new four-month lows Thursday morning, failing to rally above $1,250 per ounce as world stocks markets held flat following publication of minutes from the U.S. Federal Reserve's last policy meeting.
The gold price looks likely to snap its three-day climb today despite having found support last week following Fed Chairwoman-to-be Janet Yellen’s confirmation hearing. During the hearing Yellen as good as confirmed that she would continue with the Fed’s so-far easy monetary policy.
Based on the monthly figures to Oct. 1 recently released by the St Louis Fed, FMQ jumped $227bn in September to $12,176bn. This puts it $4,819bn and 65% over the long-term exponential trend established between 1960 and July 2008, the month before the Lehman crisis.