+ Australian banks given one week to prepare for European meltdown
Gold below $2100NZ
Well we’ve seen significant drops in the price of both gold and silver this past week. Gold has been below $2100NZ this week for the first time since late October. As you can see in the chart below it is approaching our old friend the 200 day moving average which as we’ve mentioned many times before is often a good buying zone for the long term.
Click image to enlarge
Is now a good time to buy silver bullion?
But silver in NZ dollars is at even lower levels this week. And so yesterday we wrote an article specifically looking at whether now might be a good time to buy silver bullion with NZ dollars. So if you’ve been mulling over a silver purchase that might be worth checking out…
The article states that Australian banks have been given 1 week by the Australian Prudential Regulator Authority (APRA) to…
”…model the impact of a worst-case scenario resulting in contraction in gross domestic product, an unemployment rate of 12 per cent, as well as a 30 per cent decline in house prices and a 40 per cent drop in commercial property values.”
“We’re not aware of any requests from APRA to complete a review on that basis within a week,” Mr Morschel said at the company’s annual general meeting in Sydney.
“We are aware that APRA continually asks us to stress-test our portfolio for various economic scenarios.”
Mr Morschel said that an APRA review is currently ongoing and that ANZ has until March to present information.”
That seems like a very specific set of circumstances to have made up though. The skeptic in us did think the fact the ANZ Chairman said “We’re not aware of any requests from APRA to complete a review on that basis within a week,” could mean the report just got the timeframe wrong but maybe not the scenario?
So who knows? Whether true or not it’s just further evidence of the precarious nature of the financial system and the need for some “financial insurance” in our opinion.
With only 2 days left after today before the Christmas break (meaning we won’t have access to 2 of our suppliers until Monday 9th), and prices down in both metals, now might be as good a time as any to buy we’re thinking. But if you get the urge to buy over the holidays we’ll still be just a phone call or email away.
2011-12-15 17:14:31-05Hot on the heels of our latest Weekly Wanderings where we touched on the term re-hypothecation, is this timely piece from Casey Research offering some more detail on this confusing topic and what it means for investors and gold buyers. In this article they comment… “Bottom line: No gold has been hypothecated, re-hypothecated, or hyper-hypothecated. [...]
2011-12-15 17:38:55-05We do stumble across from time to time in the blogosphere articles about supply shortages in the precious metals. Well here’s some actual nuts and bolts numbers on how the supply of gold appears at the present, as well as some prognostications on the future supply… By Louis James, Casey Research We have reported on [...]
2011-12-19 22:59:05-05It’s a question we get a lot from people we know (and those we don’t for that matter): “Is now a good time to buy silver bullion when holding New Zealand dollars?” Better buying silver now than 8 months ago Well, the first answer and one that doesn’t require a huge amount of insight is [...]
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