Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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for me…
Of course there will be a place in the order of things for unallocated . - The problem is that the unallocated market has gotten out of hand with reported leverage at times of as much as 100:1 - The market has morphed into a cess-pit of corruption, manipulation and greed. - Like everything else when it becomes too easy and when the Regulator is part of the problem. It's not just the PM market, the derivatives market in general has got the world by the b***s, exposing the global financial system to the catastrophic consequences of collapse..
All this talk about gold but it has no reflection on the share price so gold could get to 2000 and the share price might only be 1.20 so it doesnt really matter
I am still waiting for some good news from the company which is a long time coming
As Basel III comes into force, we look at the impact of the Net Stable Funding Ratio (NSFR)
There has been much debate about the implications of Basel III on the bullion industry. What is clear is that the under the current rules the cost to banks of holding gold on balance sheet will increase – the NSFR requires 85% of required stable funding.
This is punitive and does not acknowledge the highly liquid nature of gold, and the way gold is often transacted as a currency.
The World Gold Council and London Bullion Market Association recently wrote to the Prudential Regulatory Authority (PRA) setting out our concerns about the NSFR and the 85% Required Stable Funding (RSF) in particular:
- The current clearing and settlement system would be undermined – the increased costs may make participation in the clearing and settlement regime commercially unviable, potentially leading to some banks existing the system.
- Liquidity could be drained – the cost of taking on gold deposits as unallocated gold would increase compared to the cost of custody services for allocated gold. **Unallocated gold is an essential source of liquidity for the effective functioning of the clearing and settlement system.
-Financing costs would increase – stable funding costs could be passed through to non-bank market participants such as miners, refiners and manufacturers using gold.
-Central bank operations would be curbed – the clearing banks facilitate gold deposit, lending and swaps operations; essential sources of market liquidity.
Allocated vs. Unallocated Gold
There has been much speculation about the impact of the NSFR on the allocated and unallocated gold markets. Some commentators have noted that allocated gold can be considered a tier 1 asset and therefore receives a risk weighting of zero. **This is nothing new. Gold held in own vaults or on an allocated basis has always been a tier 1 asset under the Basel Accords. This is because allocated gold attracts no credit risk – it is neither the asset or liability of the custodian bullion bank and is therefore not considered part of the custodian bank’s balance sheet.
So, whilst Basel III does not materially change the treatment of allocated gold, it does increase the costs of holding unallocated gold. But does this mean the unallocated gold market will disappear? No it won’t, but the costs of holding unallocated gold will go up. Unallocated gold is an essential source of market liquidity. The clearing and settlement regime depends on it, and without an unallocated gold market it will be very difficult to finance (and facilitate) the upstream activities of gold producers and refiners, and the downstream users such as jewellers. The real economy demand for gold relies on the unallocated gold market. So whilst the funding cost of unallocated gold will increase, we are unlikely to see a major distortion in favour of allocated metal
https://www.gold.org/goldhub/gold-focus/2021/06/basel-iii-and-g
MrBond,
Of course they don't consider those because to do so would show up their calculations for what they are and mean that they would have to acknowledge that all is not going as well as they claim!
No mention here of the way POG has been held down by paper sales!
https://www.bullionvault.com/gold-news/gold-inflation-060920212
"Gold is really not a perfect hedge " says Amy Arnott, a portfolio strategist at data and ratings provider Morningstar, missing the importance of interests rates on gold importance of interest rates on gold prices.
"There's no guarantee if there's a spike in inflation, gold will also generate above-average returns."
Over the last 50 years however, " only 16% of inflation in gold prices can be explained by changes in CPI inflation," says analysis from the mining industry's World Gold Council.
I agree Bonker, a waiting game from here. GL
I must say the gold price reaction to real interest rates, after that set of inflation figures, is truly woeful. Yamana Gold up 1.5C and MVIS (tech stock) up $2.8 (nearly 10%). Give it time, I suppose, but I had thought of adding to my Centamin but have held off for now.
A small slice of Battenburg I think.
Aye.
That's my trading over with on these plays - I'll simply hodl and wait it out now.
See you on the other side.
Now gone in deep on Cey and Fres: inflation is PM's friend, Basel 3 to come
Perhaps the Statisticians are Algorithms.
I wonder why they do not consider fuel and food in these Statistics ? ;-).
Then the true figure might, just might, be clearer.
Is that the Statisticians don't use gasoline or food ?
They are continuing with manipulation of Statistics as they have done for years.
Whether they give a damn about the country is questionable !
But you can be sure their personal will be safe, both UK and US.
Along with families and friends.
Politicians and nappies have one thing in common.
They should both be changed regularly,
And for the same reason.
Rebess & Mr Bond,
I too am surprised at the apparent laid back attitude by the comex cartel, possibly now that the Covid effect card has already been used then the the proposed worldwide leveling up of corporate taxes could be used a "Get out of jail free" card on the City of London monopoly game?
Whatever happens I would rather trust a rattle snake at a lucky dip than our lying self serving government or the City of London spivs!
Good morning Mr Bond
One thing that puzzles me in the current-climate, especially in respect of an accepted need for a monetary-system reset, the UK/Bank of England, with virtually no gold on the books, appears not to care about its gold-deficit.- Something doesn't seem to add-up here.- I suspect they, in cahoots with our close American cousins, definitely know something we don't know.
Hi Mr Gnome,
So the City of London wants an exemption from the the supposed levelling up of the playing field and the rules that everyone else is supposed to follow, what a surprise !
After Brexit the present governments answer to all the other businesses that are complaining is that they should adapt,become more competitive and go out and seek new markets!
So surely the City of London should do the the same and if it is unwilling or just unable to adapt then it should be allowed to go to the wall, just like so many of our other industries and the traders should seek new employment!
Lets face it the City of London produces nothing that is essential to anyone, admitted it shuffles the indices up and down for it's own benefit, but it serves no useful purpose, it is just an self serving and perpetuating over bloated and pampered parasite that the planet would be better off without!
The arrogance and greed tf the City of London has no place in the 21st century, in fact outside of it most of the practices that take place there would be regarded as criminal!
Same thoughts here Rebess.
Ominously quiet.
I expect a last minute postponement.
Or some very logical excuse, like no current method of enforcement, till at least 2023.
Hi CHRI55
Basel to change everything. - Really? - You would never guess. - It's just the same-old, same-old. - With less than 3 weeks to go, you would have thought there would be a scramble in the market to square positions. - No sign of it. - Unless they know something we don't. - So far, a bit of a damp-squib.
Yes the Market is Trader dominated for commission for the Brokers and quick buck for the Trader.
They know the amateurs will follow but most ,too late.
Yes, Mr B, it's amazing how the markets hang on the tiniest pieces of data, even though participants know the quality of that data is suspect. Madness? An economic forecast can only be as good as the data that was used to build the model.
Will Centamin go up, or down, or round and round? I don't know. I've got to the point where I'd buy at the price which I think is fair.
Major stock exchanges in Europe were higher in premarket trade on Thursday as investors prepared for the European Central Bank's decision on the Eurozone interest rates, set to be announced later in the day. In addition, traders will also monitor the upcoming inflation figures in the United States and their effect on European markets. The United Kingdom's market regulator will reportedly investigate Amazon's business practices on antitrust grounds.
The DAX advanced 0.15%, London's FTSE 100 increased by 0.30% and the CAC 40 gained 0.16% at 8:00 am CET.
The euro was 0.12% lower compared to the dollar at 7:58 am CET, trading at 1.21654. The British pound lost 0.07% against the American currency, going for 1.41104 concurrently.
Breaking the News / MS
US CPI and Inflation figures. Today we are waiting, for those, (Read Kitco World News)
No doubt they will be massaged.
But the Market will follow them, no doubt.
The comments on Kitco sum it all up.
Great poem. The one my father used to recite to us had a verse that stuck in my mind...
"“The Moving Finger writes; and, having writ,
Moves on: nor all thy Piety nor Wit
Shall lure it back to cancel half a Line,
Nor all thy Tears wash out a Word of it.”
? Omar Khayyám
Sorry for getting off topic ...
best
the gnome
Well here we go. We have the new order, and this time it will be different. Great stuff on the International Tax set up, but of course the City of London wants exemption (sorry, this part of course is no different to the last 30 plus years!!! they are such fine upstanding and deserving peope).
Given the lags between the Fed policy and outcomes, this guarantees overshooting (!). By the time the economy finally reaches the point when the Fed starts to tighten, it will be smoking hot (at “maximum employment”) and, inevitably, getting hotter, probably blowing out steam?
That is what happened in the 1970s. In that case, the necessary disinflation was postponed until Paul Volcker took over in 1979. The experience was brutal, lives were changed, many for the worst. As a senior Federal Reserve official from 1975 to 1987, in addition to battling inflation, he sought to limit the easing of financial regulation and warned that the rapid growth of the federal debt threatened the nation’s economic health. (Hmmm....familiar?) He prevailed by delivering shock therapy, driving the economy into a deep recession to persuade Americans to abandon their entrenched expectation that prices would keep rising rapidly. The cost was enormous. Consumers stopped buying homes and cars, millions of workers lost their jobs. Angry homebuilders mailed chunks of two-by-fours to the Fed’s marble headquarters in Washington. But Mr. Volcker managed to wring most inflation from the economy.
His victory inaugurated an era in which the leaders of both political parties (elected) largely deferred to the central (Fed, unelected) bank, allowing technocrats (and unelected bureacrats and idelogues) to chart the course of monetary policy with little political (those elected by democratic processes of a sort) interference...and the world has never been the same since
Given the inevitable lags between tightening and bringing inflation under control, the costs are again likely to be severe. That would not matter to the US alone. Remember: the Volcker shock triggered the Latin American debt crisis as well as a few others.
Yellen tells G7 to keep spending, says inflation will pass
This time, there is much more debt around almost everywhere. A severe monetary tightening would create even more devastation than then.
Getting the world as a whole out of the pandemic crisis is far from a done deal. Much more still needs to be done.
Furthermore, the new approach to monetary policy of the world’s most important central bank risks serious overshooting.
By responding only to outcomes, it is nigh on certain to react too slowly. It is possible this will not matter, because expectations remain well anchored, whatever happens.
I pray this will be case. The alternative does not bear much thinking about.
regards
the gnome