In Case You Missed It – Week Ended February 13, 2016.
Stories from the week ended February 13, 2016.
Republican Donald Trump and Democrat Bernie Sanders emerged as the winners in the New Hampshire Presidential Primary in New Hampshire and North Korea launched a test long range missile. Janet Yellen gave two days of muddled testimony on Capitol Hill.
The big economic story of the week was gold as investors went ‘bananas’ for the yellow stuff. We have plenty of headlines and analysis below on the surge of gold (and silver) last week.
Oil and the dollar were also in focus as both dropped. Oil rose at the end of the week on talks of oil producers cutting output.
Gold and silver
Gold closed last week at $$1173.50 and closed this week at $1237.90
Silver closed last week at $$15.01 and closed this week at $15.75
The gold and silver ratio ended the week at 78.6:1
The gold silver ratio remained elevated in February as gold and silver surged.
Chart of the Week
Dow vs. Gold
The Dow gold ratio plummeted last week as gold surged.
Gold’s surge in 2016 has lowered the Dow/gold ratio to 12.5:1 as of February 11, 2016.
Here are the stories we wrote, followed or commented on.
WE Missed it!
From the week ended February 6, 2015:
February 5, 2016
De-dollarization
Iran says its wants Euros not Dollars for its oil
————————————————————————————————————-
February 6, 2016
European Central Bank
ECB Reveals its assets for the first time
North Korea Launches Long Range Missle
Gold
According to the China Gold Association, Chinese Gold mining production dipped to 450 tonnes in 2015
Chinese gold mining production is the largest in the world.
February 7, 2016
From Smaulgld.com
Gold
China sells $99.5 billion in reserves but buys gold
China adds 16 tonnes of gold to reserves in January
Chinese gold reserves increased 16 tonnes in January 2016.
Shanghai Gold Exchange Report 226 tonnes of gold withdrawn in January
The Shanghai Gold Exchange had record withdrawals in 2015.
Socialism
February 8, 2016
War on Cash
Europol director wants large Euro notes removed from circulation.
De-Dollarization
Russia considers trading with Iran and China in national currencies
Dollar
European Banks
Barclays shares suspended from trading
Deutsche Bank hits all time low
US Mint Sales Update
U.S. Mint sold 722,500 American Silver Eagles & 5,500 American Gold Eagles today.
YTD American Silver Eagles Sold 7,722,500/American Gold Eagles sold 104,000.
Gold
Rio Tinto, 5 others quit London Metal Exchange
China sells reserves but buys gold
February 9, 20165
Gold
LBMA Said to Invite CME LME, ICE to Propose Gold Trading Platform
Goldman Sachs trashes gold rally; says Fed will raise rates three times this year – Marco Rubio told them that three times.
Negative Interest Rates
World’s Negative-Yielding Bond Pile Tops $7 Trillion
U.S. Economic Data
December Wholesale Inventories -0.3%, Exp.-0.2%, Nov revised from -0.3% to -0.4%
Gold
But see the India Times Gold gallops on frantic demand; silver reclaims Rs 37k mark
Dollar
Reuters: Dollar hits four-month low as investors flee to safe havens
I thought the dollar was the safe haven?
Oil
Banks
Goldman Sachs defends banks’ liquidity
Buy 90% Junk Silver From BGASC.com
February 10, 2016
Yellen Yacks
Fed not on preset rate hike course, will consider market turmoil/economic conditions (full statement) “conditions less supportive of growth”
Not sure if negative rate hikes are legal
Oil
Chesapeake Oil hires help to avoid “Lehman moment”
Gold
Oh Canada! Canada sells about half of its remaining gold
India and Gold
Government raises tarrifs on gold and silver
Bloomberg talks gold down
Gold’s Monkey Magic Seen Fading
CNBC trader likes gold because of negative interest rates
War on Cash
EU Push to abolish large Euro Notes
Buy 2016 American Silver Eagle Coins
Terrorism
Female suicide bomber kills 60 in Nigeria
Fed Chatter
Fed’s Fischer worried by emergency credit reporting rules
U.S. Mint Sales Update
U.S. Mint sold 199,500 American Silver Eagles & 8,500 American Gold Eagles today.
YTD American Silver Eagles Sold 7,922,000/American Gold Eagles sold 112,500.
The US Mint also sold 3,500 American Gold Buffalo coins today- MTD 5,500 YTD 39,500
US Government posts surplus in January
Silver
Archaeologists examine a 5,000 year old silver mine in Greece
February 11, 2016
Gold Soars and Bloomberg Takes Note
but includes the standard stock language cut against gold that it doesnt pay interest
Nearly EVERY article says "GOLD DOESNT PAY INTEREST" – irrelevant in negative interest rate environmnet @EdVanDerWalt
— Smaulgld (@Smaulgld) February 11, 2016
Yellen Yacks Again
Yellen says global developments may effect the United States but premature to say what the shocks will be and insists that on balance lower oil prices are good for US consumers.
Yellen says the Fed’s December rate hike was not responsible for the market declines and says the markets were tranquil for a few weeks after the rates hike and that it was oil and downward movement in chinese currencies and weakening global growth that caused the market decline. There was overall confusion over Yellen’s testimony because there are conflicting messages coming from Yellen and the Fed. Will it be four rate hikes this year OR possible rate cut in March OR negative interest rates?
Gold Crashes Through $1200 – World Gold Council Cites Strong Demand; Russian Buying
Russian gold reserves rose by 208 tonnes in 2015
Gold
World Gold Council on 4th quarter 2015 trends
India and Gold
Gold demand to rise in India in 2016 as buyers seek ‘safe haven’
Silver
First Majestic Secures $60 million in financing
US Economic Data
Initial jobless claims 269K exp 280K prior 285K
U.S. Mint sold 78,000 American Silver Eagles & 7,000 American Gold Eagles today.
YTD American Silver Eagles Sold 8,000,000/American Gold Eagles sold 124,000.
The US Mint also sold 3,500 American Gold Buffalo coins today- MTD 5,500 YTD 39,500
Oil
Oil falls to 2003 low then rebounds on talk of OPEC cuts
February 12, 2016
US Economic Data
Retail Sales 0.2%; Exp. 0.1%
Michigan Consumer Confidence 90.7, Exp.92.3, Last 92
Business inventories +0.1% MoM in December (retail up 0.4%) and sales -0.6%.
Gold
Bloomberg’s writer Ed Van Der Walt acting in response to Smaulgld removes the “gold doesnt pay interest” standard language and replaces it with: “Even as the metal delivers no returns other than through price gains, that’s a better deal than some government debt. Gold doesn’t look so bad when rates are below zero in France, Germany, Japan and Switzerland”
"#Gold delivers no returns other than through price gains-a better deal than some govt debt." https://t.co/8qCHuF8mPa via @EdVanDerWalt 🙂
— Smaulgld (@Smaulgld) February 12, 2016
Reuters Takes Note of Gold’s Rise
Barron “WARNS” on Gold Two Reasons to Avoid the Gold-Buying Bandwagon
War on Cash
Austrian Deputy Economy Minister says Austrians should have a constitutional right to pay in cash
Fed Chatter
NY Fed President dismisses Negative Interest rate talk
U.S. Mint sold no American Silver Eagles & no American Gold Eagles today.
YTD American Silver Eagles Sold 8,000,000/American Gold Eagles sold 124,000.
The US Mint sold 500 American Gold Buffalo coins today- MTD 6,000 YTD 40,000
If you have enjoyed this report, please consider buying your precious metals through the Smaulgld affiliates linked to on this site* and subscribing (for free) to Smaulgld.com.
Get Free Updates From Smaulgld.com
Subscribe to Smaulgld.com to receive free gold and silver updates, news and analysis.
In Case You Missed it… Archives
Please visit the Smaulgld Store for a large selection of recommended Kindles, books, music, movies and other items.
You can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM Bullion, BGASC, Bullion Vault, Gold Broker, Golden Eagle Coin, GoldMoney, SD Bullion, Perth and Royal Canadian Mint ads on the site.
Browse Collectible Coins on Amazon
DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.
Chart Disclaimer: Information presented here has been obtained from a third party and is presented for information purposes only. Smaulgld can not and does not guarantee the accuracy or timeliness of the data displayed on this site and therefor the data provided should not be used to make actual investment decisions. You should always consult a professional investment adviser before investing in precious metals or any type of investment. You acknowledge that Smaulgld assumes no responsibility for the integrity of data on this site.
The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.
The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.
Send Litecoin to this address:
