GOLD PRICES dropped and then spiked Tuesday lunchtime in London, as new US data showed consumer-price inflation holding steady at 2.1% in June.
The new government of India earlier said it will retain anti-gold import rules – imposed last summer by the previous administration – defying India's gold and jewelry industry hopes and aiming to continue curbing the No.1 gold-buying nation's currenct account deficit with the rest of the world.
World stock markets rose Tuesday, as did energy and base metal prices.
The UK government meantime pushed for tougher EU sanctions against Russia over the downing of Malaysian flight MH17 over eastern Ukraine last week.
With more than 600 Palestinians and 29 Israelis reported killed in the last fortnight meantime, US and UN officials today met in Cairo to try and broker a cease-fire in Gaza.
"Tensions over the Ukraine kept safe-haven buying active," says a note from Australia's ANZ Bank.
But the quantity of gold bullion needed to back the world's largest gold ETF, the SPDR Gold Trust (NYSEArca:GLD), shrank Monday to erase the previous trading day's gain at 803 tonnes.
Derivatives betting on gold prices rose in contrast, adding 1% to the number of both futures and options contracts now open at the US-based Comex exchange.
Gold prices today jumped 0.9% after June's US inflation figures, steadying above $1310 per ounce to trade unchanged for the week so far.
The US Dollar also rose after the inflation data, briefly pushing the Euro near 2014 lows at $1.3550.
Gold prices for Eurozone investors rose above €970 per ounce – a 3-month high when hit in the wake of "dovish" comments on US monetary policy from Federal Reserve chief Janet Yellen in mid-June.
Reviewing gold prices since 2001, the metal is "ranging (and compressing) between the larger trends," says a note from Diapason Commodities Management in Lausanne.
Short term, "Precious metals are likely to retrace a little further," reckons technical analyst Axel Rudolph at Germany's Commerzbank in his weekly chart book.
"Only a rise above the current July high at 1345.30 would make us re-instate our bullish forecast."
"Resistance shows first at $1319," say technical analysts at London market-making bank Credit Suisse, "then the 61.8% retracement of the recent fall at 1325.
"Above here," they agree with Rudolph, "[we] would look to the $1345 recent high where we would again expect selling."
Meantime in India – where BJP finance minister Arun Jaitley today backed "continuing" the anti-gold import rules set by the previous government – the central bank has set new rules to try and curb a boom in households borrowing against gold.
Loans made for non-agricultural purposes must not exceed 75% of the value of the gold used as collateral, and can run for no more than 12 months.
A boom in agricultural gold loans to Indian farmers in southeastern coastal state Andhra Pradesh "[has been] used for other activities," a finance department official said Monday, including fresh purchases of gold.
"Another reason for the rising number of loans," says the Deccan Chronicle, "was [AP state's] chief minister N.Chandrababu Naidu's election promise of waiving off all farm loans after coming to power."
Naidu's administration today waived some $25,000 of state farming loans per family, the paper says.
CEO of Randgold Resources, Mark Bristow, told that the recently opened Kibali gold mine in Democratic Republic of Congo (DRC) is making steady progress towards the production targetof 550,000 ounces of gold set for its first full year of operation.
Petropavlovsk Plc., gold production company, reported a 4 percent increase in first-half gold production on Tuesday. The company also backed its production and total cash cost forecast for fiscal 2014, and said it sees a significant reduction in its cash costs in 2015-2019.
GOLD INVESTMENT and wholesale prices continued last week's late rally Monday morning in London, rising to $1317 per ounce even as the US Dollar gained on the currency market.
World stock markets fell as the United Nations urged a ceasefire between Israel and Hamas in Gaza, and Dutch investigators reached the MH17 crash site in eastern Ukraine.
US Treasury bonds and commodity prices were flat overall with crude oil steady, but corn prices hitting 4-year lows as analysts agreed the US and European harvest outlook is strong.
India's monsoon rainy season – seen by some analysts as a key driver of gold investment and jewelry demand in the No.1 consumer nation – continued to pick up this weekend after its weakest start in 5 years.
Silver tracked gold investment and wholesale prices, also pushing recovering half of last week's 4.1% drop at $21.07 per ounce.
"The worst may be behind the gold market," says a note from Bank of America Merrill Lynch, forecasting that "physical demand from emerging markets will gain further clout in the medium-term as countries get more affluent."
For now, however, gold investment demand – especially from the rich West – accounts for "the marginal buyers and [so] gold tends to be bought and sold around macro-economic 'themes'."
"In the short term, geopolitical concerns may keep gold well supported, subject to speculative sentiment," says Jonathan Butler at Japanese conglomerate Mitsubishi.
With the death-toll rising to 500 in Gaza, and pressure on Russian president Putin continuing over claims Moscow-backed separatists shot down Mayalsian airliner MH17 over eastern Ukraine, "The geopolitical situation across the globe should cushion any further sell-off," agrees a note from refining and finance group MKS, "but the risk remains to the downside."
Latest data on US gold futures and options show speculators trimming their bullish bets and raising their bearish investment positions ahead of last week's spike in prices when news broke of MH17 broke.
Accounting for bearish contracts, the so-called "net speculative long" position slipped below 500 tonnes equivalent for the first time since June on last week's data from US regulators the CFTC.
Gold investment through exchange-traded trust funds also dipped at the end of last week, with the giant SPDR Gold Trust (NYSEArca:GLD) retreating from its fastest growth since October 2012.
"The surge in investment [through gold futures and options] only took the price back to the levels of March," says a report from Societe Generale's precious metals analyst Robin Bhar, "when investment was appreciably lower."
Compared to futures and options positioning, Bhar goes on, gold ETF investment "is unlikely to drive prices higher", because such investors "tend to be more conservative" than chasing momentum, only investing "with a longer time horizon in mind.
With gold investment through ETF trust funds at 60% of its peak, "There would be reluctance from those that had their fingers burnt," SocGen concludes, pointing to the price-drop of one third from 2011.
Azerbaijan's main gold producer, Anglo Asian Mining Plc increased its output by 54.6 percent in the first half of 2014 and planned to reach its target of 62,000-67,000 ounces for the year, up as much as 28.7 percent from 2013.
Do you have a bank account that you don’t actively use or a safe deposit box that you have not checked on for a while? If so, you might want to see if the government has grabbed your money. This sounds absolutely crazy, but it is true. All over the world, governments are shortening the time periods required before they can seize “dormant bank accounts” and “unclaimed property”. For example, as you will read about below, just last year the government of Australia seized a whopping 360 million dollars from dormant bank accounts. And this kind of thing is going on all over America as well. In fact, all 50 states actually pay private contractors to locate bank accounts and unclaimed property that can be seized. In some states, no effort will be made to contact you when your property is confiscated. And in most states, the seized property permanently become the property of the state government after a certain waiting period has elapsed. So please don’t put money or property into a bank somewhere and just let it sit there. If you do, the government may come along and grab it right out from under your nose.
In this day and age, broke governments all over the globe are searching for “creative ways” to raise revenues. In Australia for example, the time period required before the federal government could seize a dormant bank account was reduced from seven to three years, and this resulted in an unprecedented windfall for the Australian governmentover the past 12 months…
The federal government has seized a record $360 million from household bank accounts that have been dormant for just three years, prompting outrage in some quarters amid complaints that pensioners and retirees have lost deposits.
Figures from the Australian Security and Investments Commission (ASIC) show almost $360 million was collected from 80,000 inactive accounts in the year to May under new rules introduced by Labor. The new rules lowered the threshold at which the government is allowed to snatch funds from accounts that remain idle from seven years to three years.
The rule change has delivered the government a massive bonanza with the money collected in the year to May more than the total collected in the past five decades combined.
Most Americans are not going to be too concerned about this because it is happening on the other side of the planet.
But did you know that this is happening all over the U.S. as well?
For instance, the waiting period in the state of California used to be fifteen years.
Now it is just three years.
And when California grabs your money they don’t just sit around waiting for you to come and claim it. Instead, it gets dumped directly into the general fund and spent.
If you do not believe that California does this, just check out the following information that comes directly from the official website of the California State Controller’s Office…
The State acquires unclaimed property through California’s Unclaimed Property Law, which requires“holders” such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller’s Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.
And it is not just bank accounts and safe deposit boxes that are covered by California law. The reality is that a vast array of different kinds of “unclaimed property” are covered…
The most common types of Unclaimed Property are:
Bank accounts and safe deposit box contents
Stocks, mutual funds, bonds, and dividends
Uncashed cashier’s checks or money orders
Certificates of deposit
Matured or terminated insurance policies
Mineral interests and royalty payments, trust funds, and escrow accounts.
And when a state government grabs your property, the consequences can be absolutely devastating. The following is an excerpt from an ABC news report from a few years ago…
San Francisco resident Carla Ruff’s safe-deposit box was drilled, seized, and turned over to the state of California, marked “owner unknown.”
“I was appalled,” Ruff said. “I felt violated.”
Unknown? Carla’s name was right on documents in the box at the Noe Valley Bank of America location. So was her address — a house about six blocks from the bank. Carla had a checking account at the bank, too — still does — and receives regular statements. Plus, she has receipts showing she’s the kind of person who paid her box rental fee. And yet, she says nobody ever notified her.
“They are zealously uncovering accounts that are not unclaimed,” Ruff said.
To make matters worse, Ruff discovered the loss when she went to her box to retrieve important paperwork she needed because her husband was dying. Those papers had been shredded.
And that’s not all. Her great-grandmother’s precious natural pearls and other jewelry had been auctioned off. They were sold for just $1,800, even though they were appraised for $82,500.
And some states are even more aggressive than the state of California in going after bank accounts.
In a recent article, Simon Black noted that the state of Georgia can go after “dormant bank accounts” after just one year of inactivity…
In fact, each of the 50 states has its own regulations pertaining to the seizure of dormant accounts. And the grand prize goes to… the great state of Georgia!
Georgia’s Disposition of Unclaimed Properties Act sets the threshold as low as one year.
In other words, if you have a checking account in Georgia that you haven’t touched in twelve months, the state government is going to grab it.
So much for setting aside money for a rainy day and having the discipline to never touch it.
As economic conditions get even worse, the temptation for governments all over the planet to grab private bank accounts is going to become even greater.
We all remember what happened in Cyprus. When the global financial Ponzi scheme finally collapses, politicians all over the world are going to be looking for an easy way to raise cash. And our bank accounts may be one of the first things that they decide to confiscate.
So please don’t keep all of your eggs in one basket, and check on all of your accounts in regular intervals.
In this day and age, it pays to be diligent.
Ext : http://theeconomiccollapseblog.com
Australia Seizes 360M From Dormant Bank Accounts And All 50 U.S. States Are Doing This Too was first posted on July 18, 2014 at 9:05 pm.