Extreme Monetary Policy Now the New Normal in New Zealand Too?

Prices and Charts

Change from last weeks gold and silver prices

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NZD Gold Challenging March All Time Highs

Gold in New Zealand Dollars was up just under 4% this week despite the NZ dollar also bouncing back a bit. NZD gold spiked up close to the March high just above $2900 per ounce before pulling back today. Currently just under $2800 again.

Looking at the chart below it is clear that in 2020 the right call has been to buy any dip in NZD gold. As the trend has been sharply higher despite the volatility.

That’s likely to be a good mantra to observe in the future too.

NZ Dollar Gold Chart

Silver Bouncing Back Even More Strongly

NZD silver is up 6% from a week ago. Outperforming gold and back close to where silver was before the plunge in March.

Where to next for silver is a harder call to make than for gold though. As for now silver is still under the 50 and 200 day moving averages. More thoughts on that in this week’s feature article below.

NZ Dollar Silver Chart

Kiwi Dollar Continues to Bounce Back

As noted already, the Kiwi dollar has also bounced back a bit this week. Although it has been unable to get back above 0.60. Until the outcome of the lockdown is clear, we might see the Kiwi range bound around here.

NZ Dollar Chart

Need Help Understanding the Charts?

Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below


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What Will the Impacts of the COVID19 Lockdown be on the Global and New Zealand Economy?

We’re at the end of the second week of the national Level 4 lockdown.

So it’s worth reflecting on what will the impacts of the COVID19 lockdown be?

We cover a lot of ground in this article including…

  • Will the Cure be Worse Than the Disease?
  • Timeline of US Federal Reserve Interventions In Response to COVID19
  • What the RBNZ Has Done in Response to COVID19?
  • US Government Stimulus “CARE” Package
  • New Zealand Government Support During COVID19 Lockdown
  • 3 Predictions on What is Yet to Come
  • High Inflation Coming?
  • Dead Cat Bounce?
  • Impact on Gold and Silver

What Will the Impacts of the COVID19 Lockdown be on the Global and New Zealand Economy?

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Major Gold Refiners Reopening – Will Gold and Silver Premiums May Now Fall?

Just like 2008 saw premiums rise while spot price fell. We have seen a similar occurrence recently caused by a massive surge in demand, coupled with the closure of a number of refineries and mints.

Bullionvault this week reported that…

“Three of the world’s biggest gold refineries, Valcambi, Argor-Heraeus and PAMP, said they will partially reopen after a two-week closure that disrupted global supply of the metal.
 
Together, says Reuters, those 3 process about 1,500 tonnes of gold a year – around 25% of total Good Delivery gold bullion bar production – also transforming large bars into ‘retail’ products such as small bullion bars and gold coins, as well as producing even higher purity metal for electronics and medical use.
 
Fears that it would be impossible to turn enough 400-ounce bars stored in London into 100-ounce bars used in New York drove US gold futures sharply above London prices after the refiners closed, and has also spurred the launch of a new Comex contract, deliverable with London standard bars through the so-called ACE system.”

So perhaps we can hope to see premiums above spot price for physical gold and silver bars and coins drop from here? Maybe not just yet…

“The Swiss reopening is also “likely to ease some of the tightness in the marketplace,” says Rhona O’Connell at brokerage INTL FCStone, “although logistics remain [difficult] in terms of delivery.

“Trucking is obviously an option within continental Europe, within strict limits, but airborne delivery is still  going to be an issue. This is part of the reason why the cash to June spreads on Comex remains bloated as risk management is still to the forefront.”

So maybe these higher premiums will be around for a bit longer yet unfortunately.

Restrictions on NZ Bullion Refiners

Local bullion producers are unable to refine gold and silver. They also can’t dispatch any products out. So any orders received but not shipped out before the level 4 lockdown will remain with the local supplier. Rest assured they are securely stored and fully insured.

We continue to be able to trade online and by phone. Although there are limited products available. Due to the above restrictions and also to the high demand that preceded the lockdown, which cleared out the stocks of physical gold and silver worldwide. So there will be delays with any orders made as stated below.

Limited Stock Available

There are also many mints and refineries across the planet that have been closed due to COVID19. Further reducing stocks.

Our offshore suppliers have limited products available. However one continues to refine and has been officially declared a Critical Manufacturing Facility by the US Federal Government and essential to continue production based on their contracts and products.  They are producing silver products that are directly being used for COVID-19 response in Italy.

Your Questions Wanted

Remember, if you’ve got a specific question, be sure to send it in to be in the running for a 1oz silver coin.

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Local Gold and Silver Bars

We can lock prices in for local gold and silver bars. However there is a 12+ week delay on delivery due to the lock down and demand that needs to be fulfilled from pre-lockdown.

Imported Bullion

We have monster boxes of 2018 Fiji Pacific Dollar 1 oz Silver Coins. These are the only 1oz silver coins we have been able to find that aren’t in multiple month back order. 4-5 weeks to be delivered to New Zealand

  • 999 Fine Silver
  • Legal Tender in Fiji
  • Maximum Mintage: 250,000
  • Sealed in Tubes
  • Diameter: 39mm
Silver 1oz coin

There is only a 5-10 day delay for gold products to be dispatched from our offshore supplier. So orders should be in New Zealand in 3-4 weeks. The only unknown currently is whether the likes of Fedex and UPS can deliver to your door. Or whether imported bullion will instead be held at their secure depots until level 4 restrictions are lifted.

Extreme Monetary Policy Now the New Normal in New Zealand Too?

One of the impacts of the COVID19 crisis looks to be permanent interventions by central banks. Graham Summers this week made the point that “Extreme Monetary Policy Is the New Normal”.

“In the last month, the Fed printed $1.3 TRILLION (with a “T”), or 1,300 billion dollars.
As a result of this, the Fed’s balance sheet has gone vertical, to a new all-time high of $5.8 trillion. To put that amount into perspective, it’s larger than the GDP of Japan, the third largest economy in the world.

Fed balance sheet exploding

By the way, that $1.3 trillion is the largest monthly increase in the Fed’s balance sheet since Lehman Brothers collapsed at the depth of the 2008 crisis.

Fed balance mirroring 2008


So my question to the Fed is this…

If things are going fine and you’ve got this situation under control… why are you printing money at a pace not seen since the worst month of the worst financial crisis in 80+ years?


This just confirms what I’ve been arguing since 2008. The Fed can never stop intervening in the markets.

Once a central bank begins using extraordinary monetary policies to prop up the financial system, those policies quickly become normalized. Meaning the system NEEDS them to continue forever.

Put another way, I believe the Fed is going to be forced to intervene in the markets more and more going forward. Fed officials can say whatever they like, but as long as the Fed is printing money by the hundreds of billions of dollars per week, the real story is that the Fed is the only game in town.”

We can likely extrapolate this out to down here in New Zealand then. The RBNZ has begun the first Quantitative Easing or currency printing in New Zealand. So odds are, just like the Fed and every other central bank that has gone down the QE path, the RBNZ will also have to continue with extreme monetary policy – indefinitely.

Therefore, we can expect more distortions and bigger dislocations in markets into the future as a result. As the central planners try to avoid any crashes, they likely just set us up for an even bigger one down the line.

As we point out in this week’s feature article, no one really knows what happens from here. But the only financial assets that have no counterparty risk, and have stood the test of time for thousands of years, seem like a better bet than just about anything else for your savings currently.

Let us know what you are after and how much you are looking to spend and we can recommend what products are available.

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

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This Weeks Articles:

What Will the Impacts of the COVID19 Lockdown be on the Global and New Zealand Economy?

Wed, 8 Apr 2020 2:35 PM NZST

What Will the Impacts of the COVID19 Lockdown be on the Global and New Zealand Economy_We’re at the end of the second week of the national Level 4 lockdown. So it’s worth reflecting on what will the impacts of the COVID19 lockdown be? This article covers: Will the Cure be Worse Than the Disease? Timeline of US Federal Reserve Interventions In Response to COVID19 What the RBNZ Has Done in […]

The post What Will the Impacts of the COVID19 Lockdown be on the Global and New Zealand Economy? appeared first on Gold Survival Guide.

Read More…

Update on Bullion in New Zealand Post Lock Down

Wed, 1 Apr 2020 11:59 AM NZST

Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $n/a Buying Back 1kg NZ Silver 999 Purity $n/a NZD Gold Pulling Back from Recent All Time High NZD gold has pulled back around 6% from last week. It briefly made a […]

The post Update on Bullion in New Zealand Post Lock Down appeared first on Gold Survival Guide.

Read More…

Dow Gold Ratio: How Does Gold Compare to Shares For the Past 100 Years? Where to From Here?

Wed, 1 Apr 2020 10:10 AM NZST

Here’s a great question from a reader on gold versus shares. It’s quite timely to look at today. Considering the recent US and global stockmarket crashes triggered by the COVID-19 pandemic. You’ll see why perhaps you shouldn’t simply compare shares/stocks to gold over a long period of time and then use this as an argument […]

The post Dow Gold Ratio: How Does Gold Compare to Shares For the Past 100 Years? Where to From Here? appeared first on Gold Survival Guide.

Read More…

Impacts of Lock Down on NZ bullion market

Wed, 25 Mar 2020 1:06 PM NZST

Impacts of The Lock Down. Volatility Continues. Physical Gold & Silver Shortage in NZ and Everywhere?  Here’s an update on what has been happening in the world of precious metals… If you usually get our daily price alert, sorry for the lack of alerts the past 2 days. It has been all hands on deck to […]

The post Impacts of Lock Down on NZ bullion market appeared first on Gold Survival Guide.

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


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide

Today’s Prices to Buy
1oz NZ 99.99% pure gold bar
1oz NZ Gold Ingot
$2889
1kg NZ 99.9% pure silver bar
1 Kilo NZ Silver Bar
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1oz PAMP Suisse 99.99% pure gold bar
PAMP Lunar Goat Gold Bar
$N/A
1kg PAMP 99.9% pure silver bar
PAMP Silver
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1oz Canadian Gold Maple 99.99% pure gold coin (2020)
Gold Maple
$N/A
1oz Canadian Silver Maple 99.99% pure silver coin
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Silver Monster Box
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Box of 500
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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
  • Plus we accept BTC, BCH, Visa and Mastercard
  • Note: For local gold and silver orders your funds are deposited into our suppliers bank account. We receive a finders fee direct from them. Pricing is as good or sometimes even better than if you went direct.

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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.
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2 thoughts on “Extreme Monetary Policy Now the New Normal in New Zealand Too?

  1. Pingback: ASB Thinks the RBNZ Will Also Expand QE in May - Gold Survival Guide

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