RBNZ Nearly Doubles QE to $60 Billion – More to Come?

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Change from last weeks gold and silver prices

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NZD Gold Dipping Down From Near New All Time High

Gold in New Zealand Dollars is up 2.4% this week. It bounced off the rising trendline last week. Then rose up above $2900 touching the all time highs from earlier this year before pulling back yesterday.

It looks to be building to challenge the big round number of $3000 before long.

NZ Dollar Gold Chart

Silver Surging 12%!

Silver has been the star this week. Surging up 12% from last Wednesday. It has touched the downtrend line in this bullish wedge formation. Also touching overhead horizontal resistance. It’s now in overbought territory. But seems to be ready to break out. Silver is looking strong.

NZ Dollar Silver Chart

The gold to silver ratio is clearly showing this silver strength. With the ratio back down below 100 for the first time since the March crash. Even so silver is still very cheap. This could well be the start of a more significant move higher for silver. Especially if we see the USD price of gold break out to new all time highs. Expect silver to move higher then too.

Gold Silver Ratio Chart

NZD Still Range-Bound Between 0.60 and 0.62

Not much change this week for the NZ dollar. The Kiwi continues to trend sideways between 0.60 and 0.62. The huge spending and expected increase in Government debt in last weeks budget hasn’t helped it.

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

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RBNZ Nearly Doubles QE to $60 Billion – More to Come?

Just after we sent last weeks newsletter the RBNZ announced it was nearly doubling its “Large Scale Asset Purchases” (a.k.a. QE on currency printing) to $60 Billion.

But already we have the likes of ANZ economists saying the central bank will have to increase this to $90 billion as soon as August.

The massive spending increases in the government budget will need to be paid for somehow.

“Government net debt is set to increase from 20 percent of GDP to a peak of just over 55 percent, the peak during the painful economic restructuring of the late 1980s.”  Source.

The argument is we are starting from a better position than many. And other countries will have to do the same.

But, it still has to be paid for.

As we pointed out last week, Ray Dalio thinks it’s almost guaranteed currency printing and debasement will be used to “Solve” the crisis.

Maybe our politicians will take the easy way out and look to fund this via further QE in the coming years?

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What Would Negative Interest Rates Mean for New Zealand?

We think the RBNZ won’t stop at just quantitative easing. There’s likely more to come. As other central banks have found (we’re looking at you US Federal Reserve) and to paraphrase The Eagles: “Welcome to the Hotel Quantitative Easing, You can check out any time you like, but you can never leave”.

One of the possible (likely?) coming options is for the RBNZ to set a negative interest rate.

Marketwatch reports:

“The Reserve Bank wants retail interest rates to fall “substantially more” than they have since it began purchasing government bonds two months ago, Mr. Hawkesby said.

“What we haven’t seen yet, which we expect and need to see, is a continued decline in retail interest rates,” he said.”

…The Reserve Bank of New Zealand is considering unconventional tools such as a negative cash rate because the coronavirus pandemic has created high uncertainty and skewed economic risks to the downside, Assistant Governor Christian Hawkesby said Tuesday.

The European Central Bank and the Bank of Japan “get a bit of a bad rap” because they employed negative rates for longer than envisioned and didn’t get inflation back to target, but that reputation may not be deserved, Mr. Hawkesby told The Wall Street Journal.

“You also need to consider what the counterfactual would have been if they hadn’t taken those actions and that’s the real test,” he said.”

Source.

So, in this week’s feature article we answer a number of reader questions on the topic of negative interest rates in New Zealand. Including:

  • What would negative interest rates mean for NZ? What does that actually mean?
  • Would I be paying to store money at the bank?
  • If the RBNZ goes into negative interest rates will it need to BAN CASH first?
  • Are my savings in the bank keeping up with inflation or am I losing money?
  • We also show how negative interest rates are already here.

What Would Negative Interest Rates Mean for New Zealand?

Your Questions Wanted

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Should I Buy Gold and Silver Coins or Bars?

The huge demand for gold and silver in March saw almost all stocks of coins depleted across the globe. We’re starting to see some coins become available again now. So it’s worth looking at the pros and cons of coins versus bars.

Trying to decide which to go for. Read on…

Should I Buy Gold and Silver Coins or Bars?

Check out some of the products below that are back available to order now. Plus the specials at the start of today’s email.

Please get in touch if you have any questions about buying gold or silver.

  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 Would Negative Interest Rates Mean for New Zealand?

Wed, 20 May 2020 11:17 AM NZST

What Would Negative Interest Rates Mean for New Zealand_A couple of weeks ago we reported on the prospect of negative interest rates arriving in New Zealand as soon as November.  The Westpac chief economist expected the RBNZ to signal its change of plan in its August Monetary Policy Statement, and make a 75-point cut to -0.5% in November. Since then we’ve had a […]

The post What Would Negative Interest Rates Mean for New Zealand? appeared first on Gold Survival Guide.

Read More…

Should I Buy Gold and Silver Coins or Bars in 2020?

Mon, 18 May 2020 2:27 PM NZST

Should I Buy Gold and Silver Coins or Bars_Here’s all you need to know about choosing between gold and silver coins or bars… Following the huge demand for gold and silver in March when the COVID-19 virus struck, the supply of gold and silver coins was virtually completely exhausted worldwide. We are now starting to see some gold and silver coins become available […]

The post Should I Buy Gold and Silver Coins or Bars in 2020? appeared first on Gold Survival Guide.

Read More…

Why it’s Almost Guaranteed Currency Printing and Debasement Will be Used to “Solve” the Debt Crisis

Wed, 13 May 2020 9:19 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 $2689 Buying Back 1kg NZ Silver 999 Purity $786 Gold Hovering Around $2800 Gold in New Zealand dollars has continued to hover around the $2800 region this week. It’s sitting on the […]

The post Why it’s Almost Guaranteed Currency Printing and Debasement Will be Used to “Solve” the Debt Crisis appeared first on Gold Survival Guide.

Read More…

Gold Backing to Debt Ratio: A Reset Like in 1934 and 1980 Would Mean $25,000 Gold

Mon, 11 May 2020 12:41 PM NZST

In this article you’ll learn about the gold backing to debt ratio. And what the gold price would need to be at today to match two previous periods of debt reset… How do you determine gold’s value? Or put another way what price should gold be at? In our view this is the wrong way […]

The post Gold Backing to Debt Ratio: A Reset Like in 1934 and 1980 Would Mean $25,000 Gold 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
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1kg NZ 99.9% pure silver bar
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1kg “Scottsdale Gold” Bar 99.99% with unique serial number

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1oz 2020 Royal Australian Mint 99.99% Gold Coin

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1oz Canadian Gold Maple 99.99% pure gold coin (2020)
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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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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 “RBNZ Nearly Doubles QE to $60 Billion – More to Come?

  1. Pingback: Clarification on Negative Interest Rates - Gold Survival Guide

  2. Pingback: RBNZ QE Ahead of Plan - Chart Proves There’s More to Come - Gold Survival Guide

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