Tag Archives: Bank of England

Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing  - Gold hedge against currency devaluation - cost of fuel, food, housing- True inflation figures reflect impact on household spending- Household items climbed by average 964%- Pint of beer sees biggest increase in basket of goods - rise of 2464%- Bread rises 836%, butter by 1023% and fuel (diesel) up by 1375%- Gold rises 2672% and hold's its value over 40 years- Savings eaten away by money creation and...

– Bitcoin volatility shows not currency or safe haven but speculation – Volatility still very high in bitcoin and crypto currencies (see charts) – Bitcoin fell 25% over weekend; Recent high of $3,000 fell to below $1,900 – Bitcoin least volatile of cryptos, around 75% annualised volatility – Gold much more stable at just 10% annualised volatility – Bitcoin volatility against USD about 5-7 times vol of traditional...

The Bank of England has announced plans to open its central-bank-money settlement system (RTGS) to non-bank payment service providers. This, it hopes, will promote competition, innovation, and financial stability by creating more diverse payment arrangements.

Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term  - Bitcoin volatility shows not currency or safe haven but speculation- Volatility still very high in bitcoin and crypto currencies (see charts)- Bitcoin fell 25% over weekend; Recent high of $3,000 fell to below $1,900- Bitcoin least volatile of cryptos, around 75% annualised volatility- Gold much more stable at just 10% annualised volatility- Bitcoin volatility against USD about 5-7 times vol of traditional...

“Time To Position In Gold Is Right Now” – Rickards   - "Time to position in gold is right now” - James Rickards- Fed has hit the ‘pause’ button; No more rate hikes for foreseeable future- Fed’s theories "bear no relation to reality" and has "blundered by raising rates"- Growth is weak, inflation is weak, retail sales and real incomes are weak- Tight money, weak economy & stock bubble classic recipe for market crash- Reduce allocations to stocks and reallocate to...

Summary: BOE hawk is arguing for a sooner unwind of QE. He did not favor the renewed asset purchases after the referendum. Sterling has been meeting resistance near $1.30 for past two months. Sterling’s advance today is being attributed to comments by a member of the Bank of England’s Monetary Policy Committee McCafferty.  However, we suspect it was a news item that was used to justify the price gains that was...

Silver Analysts Forecast $20 In Bloomberg Silver Price Survey  - Bloomberg silver price survey - Large majority bullish on silver- Silver median "12 month-forecast" of $20- Precious metal analysts see silver "24 percent rally from current levels"- Investors are pouring money into silver ETFs- Speculative funds bearish even as ETF assets rise to record- Spec funds being bearish is bullish as frequently signals bottom- Important to focus not just on silver price but on silver...

In the FT, Martin Arnold reports about a new cross-border payment method tested by the Bank of England. The “interledger” program transfers money “near-instantaneously and without settlement risk.” The Bank of England set up two simulated RTGS systems on a cloud computing platform, using the Ripple interledger to simultaneously process “a successful cross-border payment”. This is not necessarily good news for the blockchain community. The Bank of England’s proof of concept is “about...

After a tumultous week in the world of politics, with non-stop Trump drama in the US, a disastrous for Theresa May general election in the UK, and pro-establishment results in France and Italy, this is shaping up as another busy week ahead with multiple CB meetings, a full data calendar and even another important Eurogroup meeting for Greece. Wednesday’s FOMC will be the main event, with the Fed expected to hike 25bp...

This is an extract and summary from “New Gold Pool at the BIS Basle, Switzerland: Part 1” which was first published on the BullionStar.com website in mid-May. Part 2 of the series titled “New Gold Pool at the BIS Basle: Part 2 – Pool vs Gold for Oil” is also posted now on the BullionStar.com website. “In the Governor’s absence I attended the meeting in Zijlstra’s room in the BIS on the afternoon of Monday,...