Central Bank

The 30% rise in China’s private investor gold demand in the first three months of this year is seen as “a very strong signal” by World Gold Council member and market relations head John Mulligan . . . .

Stocks have erupted higher in the last month based on the belief that the economy is roaring once again. However, this is all about sentiment, not reality . . . .

Reducing debt through debt forgiveness, defaults or inflation is not without consequences. Savings designed to finance future needs, such as retirement, are lost. This in turn results in additional claims on the state to cover the shortfall or reduce future expenditure, which crimps economic activity . . . .

Like the proverbial frog that does not notice the rise in water temperature until it’s too late, investors seem to be experiencing a similarly stealthy rise in inflation . . . .

Inflation can be understood as the destruction of a currency’s purchasing power. To combat this, investors, central banks and families have historically stored a portion of their wealth in gold. I call this the Fear Trade . . . .

Russia is hoarding gold at a breathtaking pace, and the Russian Central Bank is now the world’s largest buyer of gold . . . .

Unlike paper currency, coins or other assets, gold has maintained its value throughout the ages . . . .

Besides alerting us to how the expansion of fiat money is progressing, an objective of this exercise is to give some guidance on the price relationship with gold . . . . .

Central banks are piling into gold. They have been ever since the financial crisis blew up in 2008 . . . .

The consumer price index (CPI), a measure of inflation, came in hotter than expected Friday, registering 2.3 percent year-over-year in August on expectations of 2.0 percent . . . .