The USA needs to purchase gold to pay back Germany for example? in 7 years! watch this number..............and the price of gold. The USA economics are looking better? is it? I here the super rich are rushing to purchase big gold bars at the moment. I wonder why? Hmmmmmmmmmm, is there blood on the streets for gold now? Is it time to dust the cob webs off my fiat and jump in again?
Where'd you hear that, KWN/ZH? German gold repatriation doesn't really need to be considered, it won't have any impact on gold price.
Prospects of what was inconceivable three years ago; US dollar overnight rates at a level actually above zero.
Gold heads south because Federal Reserve indicates that their decision on wether to raise or maintain the interest rates will come SOONER, rather than later. Some pundits read this to mean that interest rates will be raised early. Geopolitical tensions ease, as Israel enters into religious festival and Ukraine loses public interest. China begins QE, which devalues RMB, leading to increased value of USD, which inversely decreases gold value. People begin to liquidate gold holdings to take profit, or realise loss and transfer capital to other ventures. These are the reasons.
No mention of the absurdly complex Alibaba IPO VIE (variable interest entity) structure where investors don't actually own the company, they own shares in an offshore holding company in the Cayman Islands which has a contract with the Chinese company (still fully owned and controlled by the original owners) giving investors a right to participate in the revenue created by some of Alibaba's e-commerce and advertising businesses. In fact, Alibaba itself is just a holding company. VIEs were cooked up in the 90s to get around Chinese government regulations and (in 2012) were called "the single biggest time bomb in the U.S. capital markets". Since they are kind of illegal, China regulators could one day decide to say "sorry chumps". In fact, Alibaba wanted originally to list on the Hong Kong stock exchange but were refused by the regulator because HK refused to loosen financial regulations just for Alibaba. To quote: "The concern was that Hong Kong's status as a global financial center could be eroded by the perception that rules could be changed to suit a powerful player, in particular the Chinese government." More interesting commentary:
