Price inflation approaching

There is some evidence in the UK of a pick-up in consumer spending. There are two likely factors behind this, the first perhaps being seasonal, aided by the fine weather. The second is less obvious, but combines with the first to encourage purchases of big ticket items; and this is cheap consumer finance coupled with growing expectations of higher interest rates in the future.

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Recommended Reading: It’s all one trade

The world’s finances may be reaching critical stress-points, and as Bill Fleckenstein points out in this excellent article, the recent cracks that have started to appear in the Japanese and US bond markets could be as significant as the first payment defaults that occurred during the subprime mortgage meltdown.

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Weak US Jobs Data & Ignoring Indian Move Leaves Gold “in Tight Range” as China’s Imports Fall

Gold bullion traded for London delivery rose back through $1400 for the fifth day running on Wednesday morning, rising as the US Dollar slipped following weaker-than-expected jobs data. Gold priced in the Euro ticked higher to €1075 per ounce, but was unchanged for the week so far in terms of Pounds Sterling below £914.

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The geopolitics of gold

Western central banks have got themselves horribly wrong-footed as a result of not adjusting their anti-gold policies to allow for the realities of Asian gold demand. Though their dealings are shrouded in secrecy, there is compelling evidence that much – if not most – of Western central bank gold has been quietly sold over the last three decades.

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This will end badly but not yet

Since the onset of the global financial crisis governments and central banks have been attempting to bring about economic prosperity by creating money and pushing it out into the global economy. After almost six years however, they have failed to produce a lasting recovery, or indeed anything close.

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Gold “Still Bearish” as Western Buying “Cools”, But Indian Festival Demand Seen Matching ETF Outflows

Spot gold prices slipped back below $1470 per ounce Thursday morning in London, drifting as world stock markets failed to follow Wall Street higher, where equities yesterday hit new all-time highs. Silver held above $24.00 per ounce, just shy of last week’s finish, as commodities slipped overall.

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The case against deflation

Regular readers will know I am in the inflation, possibly hyperinflation camp; but there are those that think the future is more likely to be deflationary. In the main this is the view of neoclassical economists, Keynesians and monetarists, who generally foresee a 1930s-style slump unless the economy is stimulated out of it.

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Physical gold vs paper gold: waiting for the dam to break

In this article I will argue that the recent fall in the gold price has generated substantial demand for bullion that will likely bring forward a financial and systemic disaster for both central and bullion banks. To understand why, we must examine their role and motivations in precious metals markets and assess current ownership of physical gold.

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The Fed changes its tune as deflation gains the upper hand

Throughout the first quarter of 2013 the speeches and sound bites coming from the various heads of the US Federal Reserve had a distinctly hawkish tone. Over the past few weeks however, the talk of a Fed exit strategy and the early curtailment of QE has been replaced by more dovish talk of the need for continued stimulus and fears of deflation.

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Weekly Market Wrap: 19 April 2013 – The case for owning gold is as strong as it ever was

This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on gold, the Dow Jones Industrial Average, crude oil, copper, and the British pound.

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