Tuesday, December 4, 2012

US Mint November Gold coin sales hit most since July 2010

NEW YORK (Commodity Online): The United States Mint sales of American Eagle gold bullion coins in November were the most since July 2010, although the year-to-date tally remains below the first 11 months of 2011 while its sales of silver bullion coins in November topped the 3 million mark for the third straight month.

As per latest rata on the Mint's Web site shows 136,500 ounces of gold coins were sold last month, up sharply from 59,000 in October and 41,000 from November 2011.
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US Debt Ceiling Just $63 Billion Away

US debt ceiling of $16.394 trillion is now just $63 billion away. Furthermore, once Thursday's Bill auction adds another $26 billion in net debt, the ceiling will be a tiny $40 billion off, or just one week's worth of net debt issuance away, which is why the Treasury just warned the debt ceiling will be breached in a few weeks.

At that point, just like in August 2011, the Treasury will have no choice but to start raiding the G-fund, and other sundry government retirement funds, until such time in February or latest March, when the debt ceiling debate, and hike, can be no longer postponed.


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Goldman Sachs expects Fed to Announce QE4

Goldman Sachs expects, next month, for the Fed to come out of their policy meeting announcing QE4. It will be a purchase of $45 billion each month in Treasuries. This number will be in addition to the already existing QE3, which is $40 billion per month in mortgage-backed security debt.
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Goldman expects this to continue all the way into 2015. So we are looking at close $2 trillion of QE over the next couple of years. Keep in mind this is already in addition to the $2.5 trillion of QE1 and QE2. We are talking about close to $4.5 trillion which has been and will continue to be manufactured out of thin air in order to keep interest rates artificially low.
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But will this fix anything? Unfortunately it will not, at least according to Paul Volcker….

“Another round of QE is understandable – but it will fail to fix the problem. There is so much liquidity in the market that adding more is not going to change the economy.”

This is the “most extreme easing of monetary policy” he could recall. Mr Volcker’s comments came as the World Trade Organisation intensified the economic gloom by slashing its global growth forecasts.

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Why Gold Prices Will Soar After FOMC Meeting?

Gold prices will start another epic run beginning Dec. 12 – the day the Federal Reserve will double down on QE3 at its Federal Open Market Committee (FOMC) meeting.

Decisions made at the Dec. 12 FOMC meeting could add as much as $2.2 trillion to the Fed's balance sheet over the next two years, which will turbocharge gold prices, silver prices and oil prices.
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"Our baseline expectation is a continuation of the current pace of asset purchases of $85 billion per month on an open-ended basis..."

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Spain has requested a €39.5bn bailout

Spain has formally requested €39.5bn of European funds to recapitalise its struggling banks, according to an Economy Ministry statement. The majority of the money, €37bn, will go to the four nationalised banks: Bankia, Catalunya Banc, NCG Banco and Banco de Valencia. A further €2.5bn will be channelled into the "bad bank" which is being used to absorb and quarantine toxic real estate assets.

The money should be paid to the state's banking fund FROB by December 12. Eurozone finance ministers are expected to formally approve the bailout this afternoon at a meeting in Brussels.

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