|Is Gold is Good|
Is gold, is good, is not just mis-quoted from the Dons brand
of meats (Is Don, is good) but is also the theme of the Deutschebank who calls
gold "goodmoney" and paper "bad money". Now is a good time
to buy gold it.
In fact the President of the German central bank paid
tribute to gold as a “timeless classic.” Not only that, a leading member
of the policy committee of the Peoples Bank of China has called the gold
standard, “an excellent monetary system…”
And recently, in The China Post, CNN’s Kevin Voigt
wrote, “One platform of the recent U.S. Republican National Convention that,
ultimately, could reverberate around the world is a plan to study a possible
return of the U.S. to the gold standard. While it was perceived as a move to
appease the party’s extreme right wing, economists like Mundell think the world
needs a limited return to the gold standard.”
To substantiate that, it has been reported by Reuters
that Hong Kong's net gold flow to mainland China has jumped 47 percent in 2012
to a record high of 557.478 tonnes, showing the continued determination by
China to be the world’s largest holder of gold bullion.
In December, Hong Kong shipped 114.372 tonnes of gold to
China another record high for monthly exports and according to the Hong Kong
Census and Statistics Dept, the total gold shipments to China last year
jumped 94 percent from the 2011 total to over 832 tonnes while imports
were six times higher at 274.684 tonnes.
"It is not a surprise," said Dan Smith, head of
metals research at Standard Chartered. "Consumer and investment appetite
was quite strong and no one knows how much the central bank is
"This is a very strong number," said Nick
Trevethan, senior commodity strategist at ANZ in Singapore. "China's
implied gold demand looks set to approach or exceed 1,000 tonnes based on Hong
Kong trade data and the annualised gold production number. The implied demand
could reach 1,050 tonnes if gold inflow from other channels is factored in.” he
China produced 322.8 tonnes of gold in the first 10 months
of 2012, up 11 percent from a year earlier, said the Ministry of Industry and
Information Technology recently. Physical buying at the start of
2013 was strong as seasonal demand picked up before the Lunar New Year, which
falls on Feb. 10. But buying has since ebbed as prices moved higher and settled
in a range bound mode.
Meanwhile, back at the ranch, the Virginia House of
Delegates Rules Committee recently passed a bill to
establish “a joint subcommittee to study the feasibility of a United States
monetary unit based on a metallic standard, in keeping with the constitutional
precepts and our nation’s founding principles….” This legislation
authorizing the study widely is expected to sail through the House of Delegates
and may well be embraced by the Virginia Senate with a signature by the
The financial and political media have also taken to calling
the gold standard “mainstream.” The London FT for example, published
on August 23, 2012, “The gold standard has returned to mainstream U.S.
politics for the first time in 30 years….”;. The New York Sun editor Seth
Lipsky in The Wall Street Journal , ‘The Gold Standard Goes Mainstream.’ And in
the New York Times, ‘A Gold Standard is Unthinkable No More’.
The wheels are slowly turning in favor of a gold standard or
at least a return to gold as an important stored value for banks. This
might explain why gold has been quietly elevated to a tier one of the capital
adequacy ratio http://buying-gold.goldprice.org/2012/06/gold-capital-adequacy-ratios.html
and why banks are so keen to bolster their gold holdings. Such an action places
a higher value on gold as it is now deemed with a 100 percent weighing instead
of the former 50 percent. It seems that ‘is gold is good’ is becoming a
popular theme for 2013.
This interest by the heavy players looks like the beginning
of a new gold rally and could signal a steady rise in the gold price.
Perhaps how the time to buy gold before the rally begins.