WGC (World Gold Council)

THE WORLD GOLD COUNCIL   REVISITED


AND TRUE FACTS
BELOW:

Ben Bernanke does not control the gold price: World Gold Council

Ana Komnenic | August 1, 2013

     

   

The World Gold Council has spoken: Stop holding your breath at every word out of Ben Bernanke's mouth.
In a research paper titled "Gold and the US interest rates: a reality check" the organisation warns against putting too much weight on the US Federal Reserve's hints that it may or may not wind down QE.
"While negative interest rates support gold investment demand and rising rates increase the cost of investing in it," the report reads. "A normal rate environment – with real interest rates ranging between 0% and 4% or approximately 2.5% to 6.5% in nominal terms – is not automatically adverse to gold. In such a rate environment, gold's inclusion in a portfolio has historically been beneficial to investors."
Just last month the precious metal dropped to September 2010 levels after Ben Bernanke, soon-to-be-former chairman of the Federal Reserve, said that he had a "moderately optimistic forecast" for the US economy.
Most recently Bernanke answered a US senator's question about the gold price with:
"Nobody understands gold prices and I don’t really pretend to understand them either.”
In fact, the impact of US monetary policy on the gold price has gone down, the WGC says. With markets booming beyond American borders the WGC emphasizes that "gold is not solely tied to US sentiment and behavior."
Emerging markets make up nearly 70% of world-wide physical gold demand (including ETFS), while the US represents less than 10%.
Gold investments have been historically quite positive, the WGC claims, with long-term average annual returns of 6-7%.
Putting too much emphasis on the US interest rates "oversimplifies the issues currently at play," said Juan Carlos Artigas, head of investment research at the Council.
"In the event of a return to a more normalised real rate environment in the US it is worth remembering  that investment demand is not the only arbiter of gold prices, nor does it originate solely in the US," said Artigas, citing the Chinese market where gold consumption jumped by 132% between 2007 and 2012.
"Even with the highest rate of interest, the core value of gold is to balance out a portfolio," says Artigas. "Most investors are under allocated; optimal levels are identified as between 2% and 10%."
To view the full Journal, please visit: http://www.gold.org/investment/research/regular

Register to download and subscribe to our newsletters. Stay updated. It's free of charge. Download What drives gold

What drives gold: factors that influence the asset class and its role in a portfolio

(Gold Investor Volume 3, July 2013)

Download Gold Investor, Volume 3
To some investors, gold seems arcane: a non-productive asset that is simply extracted and stored. To many others, gold plays an important role as a store of wealth and portfolio risk management vehicle. To most, a key challenge is finding an appropriate framework of reference: what gold does, what it does not do, how and why it responds to various economic environments.
This paper sheds the light on the most common misconceptions about gold such as the exclusive use of US-driven factors in explaining its performance. Our analysis shows that gold’s performance can be understood in the context of seven primary interrelated global factors:

• Currencies
• Inflation
• Interest rates
• Consumer spending and income growth
• Systemic and tail risks
• Short-term investment flows
• Supply-side drivers

The interaction and influence of these factors make gold a valuable portfolio component as a risk-management vehicle and a source of capital preservation. 

                               

Register to download and subscribe to our newsletters. Stay updated. It's free of charge. Download Gold and US interest rates

Gold and US interest rates: a reality check

(Gold Investor Volume 3, July 2013)

Download Gold Investor, Volume 3
As the US economy starts to show signs of rebalancing, paving the way for monetary policy normalisation, we explore the misconceptions surrounding the relationship gold has with real interest rates. We demonstrate that higher real rates are not unconditionally adverse for gold, as the effect of other factors needs to be considered. Thus, gold’s portfolio attributes are not compromised by a return to a normal interest rate environment. In addition, we find the influence US real interest rates have on gold has receded over the last few decades as demand has shifted from West to East.
Our analysis discusses the traditional link between gold, interest rates, and US investment markets and explains the different reasons why it changed over time: The global gold market has expanded and the supply and demand dynamics become more diverse. Gold is not only used as an investment tool in periods of low interest rates; it is also a consumer product that can be positively influenced by economic growth. The structural changes in the gold market, the remarkable recede of real rates’ importance and their economic impacts, and the increasing relevance of the demand from emerging markets are very likely to contribute to a shift of influence in determining gold prices.
Our analysis focuses on how real rates impact gold’s portfolio attributes such as returns, volatility and correlation. Each one of these attributes is a fundamental aspect of gold’s contribution in a portfolio. Our analysis further shows how a moderate real rate environment can be favourable to gold’s attribute

Dollar Headed to new Bottom

3-4 month time frame and we are at the 100 years of the dollar on December 23rd 2013 we have one hell of a road ahead of us
 currency market war ahead

take heed in the warning

mining.com and gold sense below

The next crisis has begun: And this one is going to be in the currency markets

Toby Connor - Gold Scents | August 7, 2013

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Today the dollar broke through 80.40. This is a major development as it signals that the current daily cycle topped in only 2 days, thus confirming that the intermediate cycle has also topped.

I've been warning for months and months that this was coming. Anyone with a modicum of common sense knew that printing trillions of dollars was going to eventually have consequences. There is no escaping the inevitable; if you aggressively debase your currency eventually you are going to have a currency crisis. The first one has now begun.
Over the next 3-4 months the dollar is going to test the lower trend line of the megaphone topping pattern and ultimately break through. When it does we are going to witness a spectacular collapse in the dollar, probably testing the 2011 bottom by the next intermediate cycle low due in November.

This is going to cause all kinds of problems. We are already seeing the bond market breaking free of Fed manipulation. This will only get worse as bonds recognize the severity of the crisis ahead. Ironically the Fed is going to print harder and faster to try and tame the bond market. It will have the reverse effect. It will just accelerate the dollar collapse which, in turn, will intensify the selling in bonds.
This has already pricked the echo bubble in housing. In the chart below we see the same megaphone topping pattern in play as in the dollar index.

Smart money has known for months this was coming. I strongly suspect the manipulation in gold over the last 8 months was done to transfer physical metal from weak hands into strong hands in preparation for this event. Now it's time for gold to do its job of protecting wealth during a currency crisis. I told subscribers last night that we will see a war over the next several days and weeks as gold breaks free of the manipulation and gets busy discounting the coming currency crisis.
The intervention is going to try hard to keep gold prices down, but ultimately gold is going to win and break free of the artificially low prices. Ultimately gold is going to protect wealth during an inflationary environment just as it always does. And ultimately all the manipulation will succeed in doing is to cause price to rise much further and faster than would have occurred if gold had been allowed to trade freely.
Batten down the hatches – the next Fed created catastrophe has already begun.

Toby Connor - Gold Scents

Email: goldscents@gmail.com

Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Mr. Connor's analysis skill of the markets is largely self-taught, though he admits to being an avid reader of Richard Russell and Jim Rogers, among several others. Toby is an avid rock climber and world class weight lifter (for his age). Toby's premium service includes daily reports and an extensive weekend report.

Feed Back and Confirmation

as we are getting confirming evidence of the rise in interest rates we also see a new reality forming learn from Mexico because they can grow food all year round

Here is the awesome interview from king world newshttp://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/8/4_Hugo_Salinas_Price.html




Lindsey Williams below:

Lindsey Williams

Lindsey Williams unveils the truth behind the elite plan for humanity and this planet

Home

“This Is Exactly What My Elite Friend Said Will Happen” – Lindsey Williams

Billionaire Issues Chilling Warning About Interest Rate Derivatives

“Just within the past few days I have been told approximately when it will happen! There is a sign, I will tell it shortly!” – Pastor Lindsey Williams
Will rapidly rising interest rates rip through the U.S. financial system like a giant lawnmower blade? Yes, the U.S. economy survived much higher interest rates in the past, but at that time there were not hundreds of trillions of dollars worth of interest rate derivatives hanging over our financial system like a Sword of Damocles. This is something that I have been talking about for quite some time, and now a Mexican billionaire has come forward with a similar warning. Hugo Salinas Price was the founder of the Elektra retail chain down in Mexico, and he is extremely concerned that rising interest rates could burst the derivatives bubble and cause “massive bankruptcies around the globe”. Of course there are a whole lot of people out there that would be quite glad to see the “too big to fail” banks go bankrupt, but the truth is that if they go down our entire economy will go down with them. Our situation is similar to a patient with a very advanced stage of cancer. You can try to kill the cancer with drugs, but you will almost certainly kill the patient at the same time. Well, that is essentially what our relationship with the big banks is like. Our entire economic system is based on credit, and just like we saw back in 2008, if the big banks start failing credit freezes up and suddenly nobody can get any money for anything. When the next great credit crunch comes, every important number in our economy will rapidly start getting much worse.

Image courtesy of Danilo Rizzuti

The big banks are going to play a starring role in the next financial crash just like they did in the last one. Only this next crash may be quite a bit worse. Just check out what billionaire Hugo Salinas Price told King World News recently

Hugo Salinas Price said “I think we are going to see a series of bankruptcies. I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis. This is going to bring down the derivatives system (and the financial system).
There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates. The spiking of interest rates in the United States may set that off. What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe.
What is going to be left after the dust settles is gold, and some people are going to have it and some people are not. Then the problem is going to be to hold on to what you’ve got because it’s not going to be a very pleasant world.”…

Right now, there are about 441 trillion dollars of interest rate derivatives sitting out there. If interest rates stay about where they are right now and they don’t go much higher, we will be fine. But if they start going much higher, all bets will be off and we could see financial carnage on a scale that we have never seen before.
“This Is Exactly What My Elite Friend Said Will Happen” - Lindsey

THE (Great) BIG BREAK DOWN

 There is said to be a large event according to Greg Hunter & Jim Willie a very seasoned forecaster and intelligent man and even those who are well involved in the markets do not even know what can happen although the world is going through a very significant change the world is over as we know it and that dose not mean the earth will end it means what we thought was needs of today will be lost as real necessities will be what we really need people family friends food shelter and love we will prevail

http://usawatchdog.com/chain-reaction-of-breakdowns-in-progress-dr-jim-willie/

GNS+RE$EARCH

ALLIANCES SHIFT (This should be big News)

alliances SHIFTING AROUND THE WORLD EGYPT USA RUSSIA AND SUDI ARABIA
when Henry Kissinger was in office he would travel to countries known for their oil and make agreements with those countries those agreements were getting paid Handsomely for that countries natural resources OIL and in exchange the agreement was to buy us treasury bonds to support the us dollar because at that time on August 15th 1971 President Nixon had official taken America off of the gold standard

the purchasing of bonds at the US Treasury allows the dollar to strengthen if those countries and others dis continue to buy US Treasury bonds that simply means nobody wants to use us dollars and if nobody wants to use them they will be returned to sender back to the USA and we are well on the path with too much supply and not enough demand for those US Dollars it appears the set up is taking place (I believe with an announcement of reallocation of gold between countries coming out of China and Russia the dollar will be dumped over night) 3 week time frame

GNS+RESEARCH


DR JONES BELOW:

US vs Russia in Egyptian politics

Aug 06, 2013

Debkafile, the Israeli intelligence outlet, describes clearly who is backing who in the situation with Egypt.
http://www.debka.com/article/23168/Putin-visit-to-Cairo-impending-El-Sisi-moves-to-outlaw-Brotherhood-US-in-blocking-mode

President Vladimir Putin is set to visit to Cairo--possibly next Wednesday Aug. 7--on the advice of Saudi intelligence chief Prince Bandar bin Sultan, debkafile reports exclusively. The prince landed in moscow Wednesday, July 31 without warning. He told Putin that Saudi King Abdullah was in favor of the Russian president going to Cairo as soon as possible and did not rule out the visit occasioning the signing of a large Russian arms sale to Egypt, bankrolled by the oil kingdom. Putin will find Egypt's strongman, Defense Minister Gen. Abdel-Fattah El-Sisi, in full cry with his next steps against the Muslim Brotherhood, after unseating its president in a coup on July 3.
El-Sisi is holding urgen discussions with the heads of the judiciary to have the movement outlawed. The unwritten pact between the generals and judicial system is the most potent political force in Egypt today, which the Brotherhood will find hard to beat....
The Obama administration is already seething over the Kremlin's decision to grant the fugitive former US intelligence contractor Edward Snowden temporary asylum in Russia for escaping trial in the States on a charge of espionage. Even more painful knocks are in store for Barack Obama's Middle East policy and prestige when Egypt's military strongman proceeds to outlaw the Muslim Brotherhood movement in defiance of his wishes and Putin turns up in Cairo with more provocations....

Dr. Jones:
This report shows clearly how the US is supporting the Muslim Brotherhood, and not merely "democracy." The Brotherhood was founded 80 years ago by US intelligence to counter the Nazi inroads in North Africa, the Mideast, and Turkey. That special relationship has been under wraps for a long time, but now it is being fully exposed.
US policy has shifted from supporting dictators, who suppressed Islamists, to supporting the Muslim Brotherhood in the guise of "democracy." This new policy appears to have been first announced in the wake of 911. At least, that is the story told by General Wesley Clark. In other words, this shift began under George Bush, not under President Obama. Both presidents appear to be answering to the same hidden bosses.
It is also important to see that this new US foreign policy has apparently scrapped the oil agreement that Nixon made with the Saudis in the early 1970's. In that agreement, the Saudis agreed to buy US bonds to support the dollar after Nixon cut the dollar loose from gold. In return, the US agreed to protect the Saudis. Now the Saudis are looking to Russia for protection against the Muslim Brotherhood in their own country, who want to overthrow the current monarchy. The Saudi king knows that his internal enemies are now finding support from the US government, and he needs protection from Russia against this US-sponsored terrorism in his own country.
History is made every time there is a shift in alliances. We need to be nimble enough to recognize those shifts, so that we understand what is happening in the world around us.

---

 

correlation of gold and reserves

the word may soon look like the roles reversed and other countries will have a more consolidated position of gold as the report below shows china and Russia increasing their gold reserves right now this is how the gold stacks up between countries



by the end of this decade I see Russia and China in the 2nd and 3rd position considering the us has NOT sold any gold however if US GOV. has then they may be very close to 9  or 10



GNS+RESEARCH


Russia & China Want Gold To Diversify Massive Foreign Exchange Reserves

Details

Despite increased purchases of gold from both countries, they are expected to continue buying the yellow metal.

One of the biggest factors driving the bull market in gold over the past decade was consistent buying by central banks. After 21-straight years of selling, central banks in aggregate became net buyers for the first time in 2010. In 2012, they bought the most gold in 50 years.
It may be surprising to some that the most significant of these central bank buyers is Russia. The Bank of Russia has purchased almost 20 million troy ounces of gold over the past decade, most of that taking place since 2007.
Russia now holds the eighth-largest gold reserves in the world, representing 9 percent of its total foreign exchange reserves. That of course leaves more room for gold buying by Russia should it choose to diversify its reserves even further.
Russia Gold Reserves

Another big central bank buyer over the past several years has been China. The country, which does not regularly report on its holdings, also purchased close to 20 million troy ounces over the past decade. However, in China, gold holdings represent a mere 1.7 percent of its whopping $3.4 trillion of foreign exchange reserves, leaving ample room for diversification.
China Gold Reserves

Importantly, the gold buying by Russia, China and others adds a sense of legitimacy to the yellow metal’s store-of-value characteristic. It’s not merely “gold bugs” that have interest in the metal, but powerful national governments as well.

The GREAT splitting

THERE IS a thorn in your side that sits there annoying you day in day out most grow to ignore it and numb the pain others cope and the rest pull it out and risk death to become alive and the other few that splits them right in two

it is this great splitting through out the planet that will bring us back to valuing  what truly matters most

todays society is developed into an opposite society of what we use to be in fact the exact opposite no skills make you millions people adore you even if  you have no tact they say they are just expressing them selves yet don't have the decency of class let along class goes with classic and the classics are what success was and will continue to be as it is the example.

The example of where we come from and what created wholeness, in most school class rooms we do fractional studies and reports of other countries and find how much actual culture there is, and honor. other people may say those in china don't want to honor their culture if given a choice I think different and view that emasculate culture of china will be as disciplined and anchored to a solid foundation of self image and a very close connection to their ancestors as growing up in America we were not taught of true American culture just book reports and assignments fractions and segments of pieces of the whole. yes the so called free country and I can say what I want because I live in a free country couldn't be father from the truth although biased and yet proud of my community state and country it is merely that of the individual of those personal values and character that drives home the most important of cultured human development that knowledge passed down from the master to the child and the process repeats

GnS+Research


The great splitting will very well be those who are informed and those who are not and or (mis)informed.