Gold and wealth is often viewed hand in hand, with gold no longer being a modern measure of wealth alone, many people still believe that buying gold is only an activity for the rich, the reality is nothing could be farther from the truth.
Category Archives: Global Economy
Huge opportunity for Australian Gold Investors if AUD falls against USD
Gold has had a very turbulent introduction to the 2015 calendar year so far, with gold prices falling heavily in US dollars continually. There is however still good news for Australian investors, the Australian dollar has fallen almost equally with the US dollar, meaning that losses in gold value have barely impacted local reserve prices.
China & PBOC’s gold announcement and consequences
The severe recent price drop has a few reasons behind it. They go from the financial (and now obvious) matter to the psychological aspects of the market. It becomes a true race between gold and the United States Dollar.
Business as usual: Markets return to their pre-euro-crisis state as status quo resumes.
Everything in the last week has played out as anticipated, Greece has once again been granted more debt by euro lenders to push the Greek problem away for another day, something we assumed was always going to be the case, something you can check in our previous article from the third of July:
Australia Must Ignore Greece, more focus on Asia.
The media loves the disaster happening in Greece and the world actually falls in that game. Things with the European Union and Greece are really messed up economically, but nobody is paying attention to a bigger crisis occurring right now in Asia.
Sunday Summary: The China Situation, Gambling on Digital Currency, Mixed Demand For Gold
Although seeing massive gains in recent years, the Chinese stock market had it’s first real test in the last week with losses of between 5.1% and 5.5%. This amounts to around 2.4 trillion USD in China’s equities, with flow on effects to commodity markets such as copper, along with limited losses in international stock markets.
Financial Gymnastics: Summary of Recent Factors on Gold’s Price (July 2015)
The entire financial system remains on the brink of collapse, the total national debt of nations have gone ballistic with most of the western world having public debts of over 100 %. America, Brazil, China, Britain and Canada are leading the debt ratios with trillions of dollars in debt, debts are rising faster than economic outputs that pave the way towards higher taxes and according to The Economist debt ratios of above 90 % represent unhealthy economies in general (The Economist, 2015).
As Greece officially defaults on loan repayments, IMF releases figures for Greek continuation of the Euro.
As Greece officially defaults on their previous loan terms, the IMF have concluded in order to sustain Greece until 2018, a total of 50 billion euro would need to be provided. The only other alternative would be a short term loan of 29 billion which is estimated to last Greece through to October 2016.
Gold Recovery and China-PBOC’s Trouble
The economy at an international scale has a stubborn flu. The European Union and Greece situation, denominated by the media as the “Grexit”, is impacting on all the markets and making falling almost all indexes. Even the strong and disciplined Asian potencies are being affected in a way or another. We can see precious metals having weeks of constant sinking and nobody do something about it. Maybe India can be responsible for the recovery of gold, silver and jewellery markets.
Gold is losing the race against the Dollar
These are not good days for gold prices. Too many important and relevant events eclipsing the precious metal market are going on. From America to Greece, there is big news in the economic matter. At every side, gold prices are getting hit and the fall continues.
