Gold Seen Luring Wealthy as Central Bankers Expand Stimulus

[mamboni]

Gold Seen Luring Wealthy as Central Bankers Expand Stimulus

By Glenys Sim – Sep 21, 2012 4:00 PM GMT

More high-net-worth individuals are seeking to buy gold to protect their wealth from the risk of rising inflation after central banks boosted stimulus, according to Deutsche Bank AG’s asset and wealth-management unit.

“Gold has historically been considered to be a store of value and an inflation hedge and increasingly it is being utilized as a monetary instrument,” said Mark Smallwood, head of Asia-Pacific wealth-management solutions. “There is a growing interest among our clients to gain exposure,” he said, with an increased preference for physical holdings.

Gold is in the 12th year of a bull run, 13.5 percent higher this year, as investors seek to hedge against weaker currencies and the threat of rising consumer prices. Holdings in gold- backed exchange-traded products expanded to an all-time high yesterday, and Bank of America Corp. and Deutsche Bank are among banks forecasting that the price will rally to a record.

“With the movements by the central banks globally in the last few weeks, there is considerable investor concern as to the long-term effects of the liquidity infusions,” Smallwood said by phone from Guilin, China yesterday. “As a result of that, private clients are concerned about the possible future effects of inflation and the means of hedging that risk.”

Immediate-delivery gold reached $1,779.50 an ounce on Sept. 19, the highest price since February, after central banks took further steps to bolster their economies hurt by Europe’s debt crisis. The metal, which reached a record $1,921.15 on Sept. 6, 2011, gained 0.4 percent to $1,774.85 at 5:30 p.m. in Singapore.


http://www.bloomberg.com/news/2012-0...imulus-2-.html

[chad]

you see that story on ZH last night where the fake gold bars in nyc are now up to 11? lol.

[mamboni]

you see that story on ZH last night where the fake gold bars in nyc are now up to 11? lol.

What story? Fake gold bars!?!?!? Say it isn't so Chad!

http://gold-silver.us/forum/showthre...-Discovered-In

[chad]

What story? Fake gold bars!?!?!? Say it isn't so Chad!

http://gold-silver.us/forum/showthre...-Discovered-In

they're trying really hard. there can't be that many places on planet earth that could produce tungsten blanks, you'd think the fbi or whoever could figure it out in about 1 day. unless of course, they were told not to.

[mamboni]

they're trying really hard. there can't be that many places on planet earth that could produce tungsten blanks, you'd think the fbi or whoever could figure it out in about 1 day. unless of course, they were told not to.

I agree. First, I can't believe that there isn't a good audit trail kept on these 10 oz gold bars, at $18,000 a pop. Who in his right mind would buy such an item without knowing the seller and the seller's supplier. As for the fakes, these required very sophisticated machining and counterfeiting experience. You can count on your hand how many groups have that degree of sophistication. And a government-run operation a-la North Korean superbills cannot be dismissed. At minimum, FBI and Interpol have a very short list of prime candidates.

I'm thinking that the bars were embedded ina hard wax or resin. Then a CNC machine cut the bars and honed out the interior gold to perfectly match pre-made tungsten inserts. The sealing of the bar halves and hiding the seams required masterful technique.

[vacuum]

Meanwhile the typical articles are being published:

Golden Cross for Gold: Not as Bullish as You Think? Breakout
Gold is cooling off after a 5-week central bank-driven rally sending prices up over 10% in the short term.

[undgrd]

I still don't buy the theory that these bars were hollowed out. I would be more apt to believe a mold was taken of a real bar and gold poured into the mold around a tungsten slab.

[mamboni]

I still don't buy the theory that these bars were hollowed out. I would be more apt to believe a mold was taken of a real bar and gold poured into the mold around a tungsten slab.

I'm not a metallurgist, but the PAMP bars look extruded, stamped or machined with their glossy surface, not cast, no?

[undgrd]

I'm not a metallurgist, but the PAMP bars look extruded, stamped or machined with their glossy surface, not cast, no?

I agree. They look much nicer than a poured bar. I just don't understand how experts in the field can screw this up. Especially with the equipment they have to verify product.

[chad]

one wierd thing about them is that the serial number is raised, like it was part of the mold. on a real pamp bar, there's a little matted area and the serial number is etched in with a cnc machine.