Investment Markets Overview – w/e 18 Jan 2013

Conspiracy theorists have long argued that there is very little gold in Fort Knox, with much of the stated holdings either loaned out via the Bullion Banks or sold years ago. Well, this week the chat sites went into overdrive as the German Central Bank confirmed that it’s to repatriate some of its gold held at the New York Fed as well as at the Banque de France. The official statement said (with the emphasis underlined),By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time.  The withdrawal of the reserves from the storage location in Paris reflects the change in the framework conditions since the introduction of the euro. Given that France, like Germany, also has the euro as its national currency, the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise. As capacity has now become available in the Bundesbank’s own vaults in Germany, the gold stocks can now be relocated from Paris to Frankfurt.” Just to add to the conspiracy, the Euro was introduced over a decade ago, so why now?

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-    

  • US economic data . . .

  • Euro-Zone   . . .

  • For the UK . . .

  • Out East   . . .

  • Elsewhere   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • Returning to the Bundesbank decision to repatriate its gold,  . . .
     

  • Charts:-
    • Indices Weekly
    • US Housing Starts vs US New Home Sales
    • 2009 Car Scrapping Scheme
    • China Ind Prod vs China GDP vs China Retail Sales
    • Rio Tinto PLC 

Table of 15 Indices, 11 columns of detailed information, for accurate analysis

“The trouble with conspiracies is that their power erodes with time”

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