Commodity Trade Mantra

Posts Tagged ‘European Banks’

Gold and Silver Strong – Banks and Stocks Scary

European Banks are worth watching. The failure of even one modest-sized European bank will send ripples through the world financial system & would likely drive significant safe-haven buying in gold and silver. Valuations are widely acknowledged to be at nosebleed levels versus historical norms & individual investors are fleeing equity markets. Gold and silver benefit during a selloff in stocks.

Russia Busts Gold Selling Rumors, Reports Buy Of 600K Ounces More

As if to deter further speculation that Russia is indeed converting hard money earned from real resources for fiat paper, the Russian monetary authority made it quite clear, that at least in November, Russia not only did not sell any gold, but in fact bought another 600K ounces. However Russia sold some $8 billion in US Treasury holdings in Oct.

Gold Prices Boom Coming Due To Worldwide Inflation

Deflation is a central banker’s worst nightmare. Bankers desperately need inflation to avoid deflation. The banks can only inflate their way out of their crushing debt loads. And higher inflation means higher interest rates, both of which are very positive for the gold markets. People buy gold as a safe haven against inflation.

Banks Have Become the Permanent Government of Europe

European banks have long been hermetically sealed black boxes. The only thing known about the holes in their balance sheets, left behind by assets that have quietly decomposed, is that they’re deep. And no one is allowed to know until Eurocrats decide who is going to pay for bailing out these banks.

Ukraine Bank Runs Could Soon Be Seen In EU And U.S.

The plunge in the Ukrainian hryvnia this week and the risk of bank runs, not to mention the risk of contagion for European banks exposed to Ukraine should support gold. Rising geopolitical tensions between Russia and the West over developments in the Ukraine should also be supportive.

European Banks have $3 Trillion of Exposure to Emerging Markets

European banks have loaned in excess of $3 trillion to emerging markets, more than four times U.S. lenders, putting them at greater risk if financial market turmoil in countries such as Turkey, Brazil, India & South Africa intensifies. Europe’s banks have about 12% of their assets in emerging markets.

Waiting For An Economic Collapse? Look At What Is Happening In Europe

If you are awaiting the arrival of the economic collapse, just look at what is happening in Europe. The entire continent is a giant economic mess right now. Unemployment and poverty levels are setting record highs, and there is an ocean of bad loans and red ink everywhere you look.

The Gold Market Update

With an astronomic and ever growing debt and derivatives overhang, there are essentially only two choices for the world economy. […]

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