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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (11238)	1/18/2015 6:41:33 PM
From: Goose94	Read Replies (1) \| Respond to of 203397

Gold: There's no doubt that China has a plan, and likely won't announce its holdings until it gains the support of other nations for its yuan. But you can quote me on this: "When China finally announces its gold holdings, it will shock the world." And - unlike the Fed - I bet China won't have a problem showing its gold to the world. The Biggest Public Buyer of Gold: Russia It's no secret that Russia has been the biggest buyer of gold in 2014 - at least via publicly available knowledge. Russia continues to soak up whatever gold it can. By Q4 of 2014, Russia purchased a whopping 55 tons - that's more than all the central banks combined in Q3 (according to official data). While Russia's economy is being destroyed by lower oil prices, it still is the leader in energy supplies to Europe. With that being said, what if Russia begins to demand gold for its oil supplies? Russia's President, Vladimir Putin, is not a dumb person. Why would he continue to buy so much gold during a time when his country is suffering from lower oil prices? Remember, Russia has already been testing its own clearing system to bypass the West's SWIFT system. I am sure the answer will be revealed soon. Countries all around the world are now asking for their gold back, including Germany, Belgium, Holland, and Austria. Here's some food for thought: These four nations represent a massive core of the European Union - a union whose central bank is likely about to embark on another round of money printing. Could these countries be preparing for a Russia-China gold-backed currency swap? Perhaps it is already happening. The Universal Credit Rating Group* In 2013, China and Russia revealed to us that it would be launching its own version of a ratings agency to battle the U.S.-based credit rating agencies of Moody's, S&P and Fitch. This year, it seems that the ratings agency is about to finally take off. "The new Universal Credit Rating Group (UCRG) is being set up to rival the existing agencies Moody's, S&P and Fitch, and its first rating will be issued this year. The setting up of UCRG is in its final stages, ready to challenge the 'Big Three' that currently dominate the industry, the Managing Director of RusRating, Aleksandr Ovchinnikov told Sputnik News Agency on Tuesday. "In our opinion, the first ratings [will] appear ... during the current year," Ovchinnikov said, adding that accreditation with the local regulator is already underway." It seems to me that China and Russia are well on their way to removing their dependance from a Western-controlled financial system. Gold: The Final Frontier? After two straight years of losses, gold is off to its best start to a year since 2008; when, of course, we witnessed gold climb to record highs. No matter how anti-gold you are, the fact is: gold remains a safe-haven hedge against global financial calamity. Gold has been on a bearish-to-bullish reversal against the dollar since early November. Buyers in Europe and Japan are now up 22% and 19%, respectively, over the last year. The Unwinding of Rehypothecation Remember, physical gold has been sold and leveraged so many times over since the 1950's, through what we call "rehypothecation" I talked about rehypothecation before: "In short, banks and brokers lend money to their clients using assets that have been posted as collateral. These assets can be anything from currency to hard assets such as gold or other base metals. The banks/brokers can then take these assets and use them for their own purposes to create other financial instruments; metal-backed currency, so to speak. This is called rehypothecation. And yes, it sounds almost like a Ponzi scheme. Many times, these assets are "supposed" to be sitting in a vault or storage facility somewhere but because the "rehypothecation" process is often repeated many times over, no one really knows where the assets/metals/commodities are - if they exist at all." For years I have warned about the problem with the rehypothecation of commodities and metals; that we could see a major break in this system if strong evidence were presented that many of these collateralized assets may not actually exist. It's no secret that the amount of gold that's suppose to exist, likely doesn't. We already witnessed massive withdrawals of gold from the vaults of major banks, such as JP Morgan - all in conjunction with the repatriation of gold by nations around the world. While gold has been boring when viewed from American soil, it has continued to protect the wealth of many other nations (as seen in the above charts). Which brings us to gold mining stocks... There are now a staggering number of gold companies experiencing a bearish-to-bullish reversal in their charts. While the last few years have been dead for the gold mining sector, it may be about to change. Let's see how much more gold can be manipulated... Seek the Truth, Ivan Lo The Equedia Letter