What? A Central Banker Recommends Gold

Central Banker Recommends Gold

This Week:

  • Can You Get Insurance on Gold and Silver Bullion in New Zealand?
  • Why Physical Cash Is Being Eliminated
  • RBNZ Between a Rock and a House
  • What? A Central Banker Recommends Gold
Got a question about gold or silver? 
*****Ph 0800 888 465 and speak to David or just reply to this email.

Prices and Charts

Spot Price Today / oz Weekly Change ($) Weekly Change (%)
NZD Gold $1784.26 + $2.09 + 0.11%
USD Gold $1262.90 + $49.60 + 4.08%
NZD Silver $24.15 + $0.67 + 2.85%
USD Silver $17.09 + $1.11 + 6.94%
NZD/USD 0.7078 + 0.027 + 3.96%
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The bounce back we mentioned last week might be due, did indeed take place.

Gold in NZ Dollars dipped briefly down below the 200 day moving average line to around $1750 before bouncing sharply higher. This rise was dampened today by the sharp rise in the Kiwi dollar following the announcement that the RBNZ was keeping interest rates on hold at 2.25%.

NZD gold Chart

Likewise silver dipped lower almost to the 200 day moving average, but it also touched the blue uptrend line before staging a comeback. Today, even with the higher Kiwi dollar, it is still up 2.68% from last week.

NZD Silver Chart

You can see that after the sharp rise in the NZ Dollar it is looking over-extended now. It is well outside the upper Bollinger band and also into overbought territory on the RSI indicator (bottom of the chart). So odds are we will see a retracement of recent gains in the coming days.

NZ Dollar Chart

This may well in turn give a boost to local gold and silver prices (a weaker Kiwi buys less gold and silver). But the trend in the Kiwi does seem to be a slow steady rise higher still.

So we’ll stick by our call from the start of the year that gold and silver in NZ dollars won’t “rise” as much as the US dollar prices this year.

Perhaps we’ll see gold continue its sideways consolidation between $1750 and $1920 for a while yet. Silver in turn could do the same between $23 and $26.

We’re still betting both metals are back in long term uptrends though. So before long we reckon we’ll see them break out higher again. That’s our 2 cents worth anyway for what it is worth. But given it’s free, it might not be worth much!

RBNZ Between a Rock and a House

We’ll admit we stole that headline from an ASB email, but it sums up where the NZ Central Bank is currently.

(Here’s a link to a summary of todays interest rate decision if you must.)

They think they need to cut interest rates to boost inflation. Because low prices are the enemy of central banks the world over. Never mind that their policies actually seem to be causing people to save more and spend less.

But with house prices continuing their seemingly unstoppable ascent they don’t want to give them further reason to rise.

So for now they sit on the fence and see what happens. Odds are they’ll do something soon enough – because that’s what central planners do.

Probably further “macro prudential tools” will be pulled out of the hat in coming months with the aim of cooling house prices, as this will then supposedly let them cut interest rates further.

You do one thing that you know has a negative effect, then do something else to negate what it is you’ve just done.

That seems to make sense to the bank economists from what we’ve read. But stuffed if we can fathom it.

The New Zealand economy will just continue to get more and more imbalanced, just as is happening everywhere else in the world.

We stick by our solution to high house prices from a few weeks back.

“So probably the solution to high prices are… even higher house prices!

Say what!

Well contrary to popular belief, they can’t keep rising forever. Eventually the prices will get too high for anyone else to buy them. When the easy capital gains cease odds are many will sell and cause an oversupply on the market. Result: Lower prices.”

Can You Get Insurance on Your Insurance?

We often call gold and silver “financial insurance”.

They are a hedge against governments and central bankers and give you some “cover” for if the unexpected happens (actually given how predictable the central banker reaction to any negative news is these days, maybe that should be if the expected happens!)

Insurance on gold & silverA question we’ve often had is can you get insurance on gold and silver bullion in New Zealand?

So we sat down and put digital pen to digital paper and recorded what we know on the subject for this weeks feature article. It’s not a straight forward yes or no answer by any means and depends chiefly on where and how exactly you store your precious metals.

If you’re considering buying physical gold and silver, then you should also be considering where and how to store it. So you’ll also learn about that…

Can You Get Insurance on Gold and Silver Bullion in New Zealand?

We’ve got a couple of other articles on the site this week too. Plus a short video interview with Grant Williams which is worth a look. So just scroll down the page and you’ll find the links to all them.

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What? A Central Banker Recommends Gold?!

A month ago we noted that another surprising addition to the ranks of gold bulls.

Establishment economist and former chief economist of the IMF, “Kenneth Rogoff, Harvard professor, chess grandmaster and author of the widely acclaimed book This Time Is Different, just sent shock waves through the global elite by recommending that emerging-market central banks buy gold to diversify their portfolios away from dollar holdings.”

We now have another surprising addition to the ranks of gold proponents.

The latest World Gold Council Gold Investor magazine  features none other than Mervyn King, Governor of the Bank of England from 2003 to 2013. He discusses global economic prospects, the limits of monetary policy and the role of gold in a world dominated by ‘radical uncertainty.’

Here’s is the most surprising quote of the week – maybe the year even:

“If we don’t quite know what the future holds, there is little point in getting carried away by very fancy mathematical calculations of optimal portfolios. Don’t rely on past data to be a good guide. Try to think through what mix of assets gives you the best chance of surviving some big event. That must mean including assets that are negatively correlated or uncorrelated in your portfolio. And I am very struck by the fact that over many many years, central banks, governments and individuals have always, despite the protestations of economists, held some gold in their portfolio.”

Now when we see these card carrying members of the establishment talking up gold, that is likely a sign that the shackles have been loosened from gold’s ankles.

So it should not be a surprise that we are seeing the price move slow but surely higher again.

Silver still continues to lag gold overall even after some sharp rises of late. It perhaps remains the bet with the most upside still. But both metals would seem to have much lower downside than many other assets available globally.

Get in touch if you have any questions about adding these “negatively correlated or uncorrelated” assets to your portfolio.

Free delivery anywhere in New Zealand
Our offer continues of Free delivery on boxes of 500 x 1oz Canadian Silver Maples delivered to your door via UPS, fully insured.

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This Weeks Articles:

End of Privacy

End of Complete Privacy on Gold Purchases in NZ in 2017?

2016-06-02 01:23:18-04

This Week: End of Complete Privacy on Gold Purchases in NZ in 2017? Precious Metals and Kiwisaver Our Thoughts on Bitcoin Gold & Silver Exit Strategies Looking to buy and nervous about the process? ***** We welcome first time potential buyers to call us and ask any question you like, as we understand the nervousness […]

Read More…
Get Insurance in gold and silver

Can You Get Insurance on Gold and Silver Bullion in New Zealand?

2016-06-02 20:52:03-04

If you’ve bought or are thinking about buying gold and silver bullion, the question you should ask is where will you store it? The next question that often springs to mind is can I insure gold and silver bullion in New Zealand? The short answer to this question is “Yes”. However it’s not as simple […]

Read More…

 

 

Bear Market in Commodities

The Bear Market in Commodities Is Over…Here’s How to Cash In

2016-06-08 18:59:20-04

It does indeed appear that commodities have turned the corner and may have bottomed out recently. However given the state of the world it makes sense to consider which commodities are likely to perform better regardless of the state of the global economy. Read on to learn more… The Bear Market in Commodities Is Over…Here’s […]

Read More…

 

Global Epidemic

 

 

 

 

 

How to Protect Yourself from This New “Global Epidemic”

2016-06-08 19:40:34-04

When it comes to your savings these days there is something else to be concerned about beyond just inflation, central banks and record low interest rates, or a further financial crisis. Read on to see what this is and how to protect yourself against this new age risk… How to Protect Yourself from This New […]

Read More…

 

Why cash illimated

Why Physical Cash Is Being Eliminated: Grant Williams

2016-06-08 20:35:12-04

We have always enjoyed Grant Williams “Things That Make You Go Hmmm” newsletter. Always very witty and sharp. Here’s a great interview with him from the recent Mauldin SIC conference. He makes some great points about why he buys gold and what his considerations are. Such as: He doesn’t buy gold – he owns it […]

Read More…

 

As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.

  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing

Today’s Spot Prices
Spot Gold
NZ $ 1784.26 / oz US $ 1262.90 / oz
Spot Silver
NZ $ 24.15 / oz
NZ $ 776.42 / kg
US $ 17.09 / oz
US $ 549.55 / kg

 


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide
Today’s Prices to Buy
1oz NZ 99.99% pure gold bar
1oz NZ Gold Ingot
$1845
1kg NZ 99.9% pure silver bar
1 Kilo NZ Silver Bar
$877 (price is per kilo for orders of 1-4 kgs)
$860  (price is per kilo only for orders of 5 kgs or more)
1oz PAMP Suisse 99.99% pure gold bar
PAMP Lunar Goat Gold Bar
$1891
1kg PAMP 99.9% pure silver bar
PAMP Silver
$904
1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple
$1919
1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins)
Silver Maple Silver Box
Tube of 25 $786.50
Box of 500 $14450
(Fully insured and delivered)

Note:

  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Note: Your funds are deposited into our suppliers bank account only. We receive a finders fee direct from them only.


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Our Mission

  1. To demystify the concept of protecting and increasing ones wealth through owning gold and silver in the current turbulent economic environment.
  2. To simplify the process of purchasing physical gold and silver bullion in NZ – particularly for first time buyers.

We look forward to hearing from you soon.

Have a golden week!

David (and Glenn)
GoldSurvivalGuide.co.nz
Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.co.nz

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The Legal stuff – Disclaimer:
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.

Gold Survival Guide
PO Box 74437
Greenlane Auckland 1546
New Zealand

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One thought on “What? A Central Banker Recommends Gold

  1. Pingback: New Zealand interest rates end up negative eventually as well? - Gold Survival Guide

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