LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Mene Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year 2018
By: Menē Inc.

Precious Metals Update Video: June gold contract swing lines..
By: Ira Epstein

Can Gold Rise Without a Rate Cut?
By: Jordan Roy-Byrne CMT, MFTA

Hold onto Your Wallets, All You Billionaires
By: Rick Ackerman, Rick's Picks

Asian Metals Market Update: April-23-2019
By: Chintan Karnani, Insignia Consultants

SWOT Analysis: Venezuela Liquidated $400 Million in Gold Last Week
By: Frank Holmes, US Funds

The Annual Silver Surveys
By: Ted Butler

A Special Message at Easter from the Precious Metals Sector...
By: Clive Maund

COT Gold, Silver and US Dollar Index Report - April 19, 2019
By: GoldSeek.com

Northern Vertex Posts Record Production for Moss Mine in March
By: Northern Vertex Mining Corp.

 
Search

GoldSeek Web

 
Gold Investments Market Update - Bank of England Considers "Nuclear Option" of Massive Money Printing, Monetising Debt and Direct Injection of Cash into Economy



-- Posted Friday, 5 December 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

 

 

 

  

Gold fell nearly 0.6% yesterday on light volume as the dollar was mixed and oil and most commodities fell sharply again. Gold in euros and particularly British pounds rose sharply when interest rates were slashed by the ECB and BoE. Both central banks indicated that more cuts were likely. Gold has given up some of yesterday’s gains but remains firm in British pounds and Euros at £526/oz and €604/oz respectively.

Internationally, central banks are racing towards an unprecedented ZIRP policy or zero interest rate policy and this will likely put pressure on the value of all currencies and be very supportive of gold in the coming months.

Buyers again held back yesterday and all eyes are now focused on the release of U.S. nonfarm payrolls data later today. Nonfarm payrolls are expected to be poor (economists expect US employers slashed nonfarm payrolls by 320000 in November, which would be the sharpest drop in employment since 2001) and this should put pressure on the dollar and equity markets.

Bank of England Considers "Nuclear Option" of Massive Money Printing, Monetising Debt and Direct Injection into Economy

The Telegraph’s economics editor, Edmund Conway, reports today that the Bank of England is working on radical plans to inject cash directly into the economy as a last resort to reverse a slide into recession. The Daily Telegraph said the Bank was "working on radical plans to inject cash directly into the economy -- the nuclear option to be used only when interest rates approach zero."

The report said the Bank was considering engaging in "quantitative easing" -- printing more money to reflate the economy.

"Measures under consideration include direct purchases of assets, such as government debt or commercial investments, by the Bank or the Treasury, as well as expanding the Bank's balance sheet, a means of pumping extra cash into the banking sector," the newspaper said. The report said the proposals could be put into action within weeks.

Added weight was given to the proposals by European Central Bank President Jean-Claude Trichet, who seemed to hint in the press conference to announce the ECB's 75 basis point rate cut yesterday that it may also consider "nuclear options".  "We will look at what is necessary at any period of time," he said. "If new decisions are needed, we will take new decisions."

An adviser to U.S. President-elect Barack Obama told BBC’s ”Newsnight” late on Thursday that central banks may have to engage in direct lending to lift the economy. Robert Reich, a former U.S. Labour Secretary and a member of Obama's transition economic advisory board, told "Newsnight" that "it is probably going to be necessary for central banks all over the world to get more involved in direct lending."


A GBP Perspective of the world markets

 

 

 

05-Dec-08

 

Last

 

1 Month

YTD

1 Year

5 Year

Gold £

 

524.89

 

11.84%

25.11%

34.06%

123.86%

Silver £

 

6.46

 

-0.72%

-13.10%

-7.99%

105.33%

Oil £

 

30.09

 

-26.77%

-39.73%

-30.10%

69.61%

FTSE

 

4108

 

-9.33%

-36.38%

-36.74%

-5.93%

Nikkei £

 

58

 

4.07%

4.12%

-15.84%

29.23%

S&P 500 £

 

575

 

-10.31%

-29.86%

-21.45%

-9.99%

ISEQ £

 

2172

 

-12.93%

-57.36%

-56.74%

22.43%

GBP/USD

 

          1.469

 

-7.28%

-26.05%

-27.54%

-15.20%

GBP/EUR

 

          1.155

 

-5.80%

-15.13%

-16.78%

-18.71%

GBP/JPY

 

135.52

 

-12.88%

-38.90%

-39.72%

-27.21%

© 2008 Goldassets.co.uk

 

 

 

 

 

Speaking on the same programme, Martin Sorrell, chief executive of WPP Group, the world's second-largest advertising company, said that "if we do have quantitative easing, which I think will increasingly come to the fore, we are going to have very significant inflation in the future." On the economic outlook, 2009 will be a "very, very tough year," Sorrell said.

Given the extent of the declines seen in asset prices, commodity prices and especially oil prices and the nature of the international credit crunch it is understandable the deflation is the the topic du jour and increasingly the sole worry of most economists (particularly uber Keynesians) and now investors. They are right to be concerned regarding this deflation however the real threat, particularly over the medium to long term is that of inflation due to quantitative easing, monetizing debt and money printing internationally on a scale never before seen by mankind.

The end of result of ZIRP, quantitative easing and monetizing debt by printing money to buy their own bonds is likely to be a very sharp global inflation (as warned of by Martin Sorrell) and possibly even hyperinflation and a global monetary crisis (with the dollar and pound at its epicenter).

 

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252. Registered for VAT under number 6397252A. Codes of Conduct are imposed by the Financial Regulator and can be accessed at www.financialregulator.ie or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Past experience is not necessarily a guide to future performance.

All the opinions expressed herein are solely those of Gold & Silver Investments Limited and not those of the Perth Mint. They do not reflect the views of the Perth Mint and the Perth Mint accepts no legal liability or responsibility for any claims made or opinions expressed herein.


Fair Use Notice: This newsletter contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of financial and economic significance. At all times we credit and attribute the copywrite owner and publication.We believe this constitutes a 'fair use' of any such copyrighted material as provided for in Copyright Law. The material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for economic research purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ireland

Ph +353 1 6325010
Fax  +353 1 6619664
Email info@gold.ie
Web www.gold.ie


Gold Investments
No. 1 Cornhill
London
EC3V 3ND
United Kingdom
Ph +44 (0) 207 060 4653
Fax +44 (0) 207 8770708
Email info@goldassets.co.uk
Web www.goldassets.co.uk
Mission Statement
Gold and Silver Investments Limited hope to inform our clientele of important financial and economic developments and thus help our clientele and prospective clientele understand our rapidly changing global economy and the implications for their livelihoods and wealth.
We focus on the medium and long term global macroeconomic trends and how they pertain to the precious metal markets and our clienteles savings, investments and livelihoods. We emphasise prudence, safety and security as they are of paramount importance in the preservation of wealth.

Gold and Silver Investments Ltd. have been awarded the MoneyMate and Investor Magazine Financial Analyst of 2006.


-- Posted Friday, 5 December 2008 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.