The McKinsey Global Institute recently reported on the effects of Quantitative Easing or QE on the UK economy or to be more precise the net transfer of £110 billion from UK households to the UK government.
Stop the Duke, Go for Gold! Is a story John Butler, of Amphora Capital, told me a while back which has played on my mind ever since. It’s a story of middle-classes fighting back at politicians, their weapon? Gold.
Wholesale gold bullion prices climbed back above $1,725 an ounce Wednesday while stocks and the euro recovered losses made in Asian trading immediately after European policymakers failed to reach a deal on Greece.
Wholesale gold bullion prices fell below $1,710 an ounce Friday morning in London, dropping below that level for the second day in a row, as stocks, commodities and the euro all fell and US Treasuries gained.
Expect general interest in gold as a store of value to increase while confidence in fiat currencies declines. If this trend is energized by increasing uneasiness over the safety, security, and ownership of the gold held by the world's central banks, volatility could result.
Wholesale gold bullion prices rallied to $1,718 an ounce Thursday morning in London, less than 24 hours after dipping below the $1,700 mark for the first time since the US Federal Reserve announced a third round of quantitative easing last month.
Gold continues to hover near its 11 month high in dollar terms and near new records and the €1,400 level in euro terms. The lack of confidence over Spain’s finances has kept investors alert as they await a US jobless report on Friday.