BullionStar Blogs

Why the U.S. Mint Once Issued Gold Discs to Saudi Arabia

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• JP Koning
• 12 Comments

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Shortly after World War II, the U.S. produced almost 200,000 gold discs for Saudi Arabia. Coin collectors usually link the discs to ARAMCO, the Saudi-American company responsible for producing much of Saudi Arabia's oil. This post revisits the monetary arrangements of the era to determine why the discs were actually issued. Continue Reading

LBMA trading volume data confirms the paper gold casino in London

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• Ronan Manly
• 7 Comments

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Following on nearly four years after the UK financial authorities released a report titled the Fair and Efficient Markets Review, the London Bullion Market Association has finally released a new report showing trading volumes in the London gold and silver markets.

While the new data confirms the long standing view that gold trading in London is predominantly synthetic paper... Continue Reading

Bank of England refuses to return 14 tonnes of gold to Venezuela

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• Ronan Manly
• 32 Comments

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A number of news stories have circulated recently that Venezuela is having difficulty withdrawing 14 tonnes of its gold from the Bank of England vaults in London.

While official sources quoted in these articles offer explanations for the delay which are clearly bogus, and the real reason is one of politics, Venezuela's inability to withdraw its gold from the Bank of England... Continue Reading

Does the recent spate of Central Bank gold buying impact demand and price?

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• Ronan Manly
• 2 Comments

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Central bank gold demand has hit the headlines recently due to additional central banks announcing gold purchases as well as an overall increase in the amount of gold which these banks as a group claim to be buying.

But it is dangerous for the media and the World Gold Council to group all central bank gold purchases into the same basket, since the motivations of individual... Continue Reading

Gold’s Official Price is $42, and Maybe That’s a Good Thing

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• JP Koning
• 25 Comments

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The U.S.'s official gold price is set at $42.22, far below the market price. This post explains what would happen if the official price was increased to $1225, the current market price. The result would be a large transfer of U.S. gold ownership from the Federal Reserve to the U.S. Treasury. This would hurt the Fed's ability to run an independent monetary policy. Continue Reading

In surprise move, Central Bank of Hungary announces 10-fold jump in its gold reserves

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• Ronan Manly
• 3 Comments

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In dramatic news for the gold market, the central bank of Hungary has just announced that it has increased its strategic gold reserves by 10-fold from 3.1 tonnes to 31.5 tonnes. That's a 1000% increase.

Not only that, but the Hungarian central bank has also repatriated all of this newly purchased gold to Hungary, some 28.4 tonnes, signalling the geo-strategic nature of this... Continue Reading

Skepticism reigns about the True state of Chinese central bank gold reserves

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• Ronan Manly
• 5 Comments

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When BullionStar ran a Twitter survey to find out what percentage of people believe the official Chinese claim about its central bank gold holdings, the results showed resounding skepticism about the official data. The pool garnered 2337 votes and a full 91% of respondents did not believe the official figure. But within the results there were some surprises. Given the level of... Continue Reading

Sanctions Busting, European Style

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• JP Koning
• 13 Comments

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Germany, France, and the UK intend to create a new Special Purpose Vehicle (SPV) to enable cross-border payments with Iran, which is currently being sanctioned by the U.S. The SPV will be able to carve out some space for the rest of the world to engage in Iranian trade, but we shouldn't overestimate its ability to override U.S. economic power. Continue Reading

LBMA Clearing and Vaulting data reveal the absurdity of the London ‘Gold’ Market

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• Ronan Manly
• 6 Comments

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There are relatively tiny quantities of physical gold holdings in LBMA London vaults to underpin the huge amount of 'gold' trading that goes on in the London Gold Market. On an annualized basis, the equivalent of 1.5 million tonnes of 'gold' are 'traded' in London, however, there have only ever been about 190,000 tonnes of gold mined throughout history. So what is going on? Enormous... Continue Reading

Paulson’s Shareholders Gold Council finally launches after initial delays

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• Ronan Manly
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In September 2017 at the Denver Gold Summit, hedge fund Paulson & Co led by John Paulson pitched the idea for a 'Shareholders Gold Council' to address the ongoing under-performance of the gold mining sector and its poor shareholder returns. Initially earmarked for a launch in early July 2018, the establishment of the Council was delayed but has finally now happened. There are 15... Continue Reading

Chinese Gold Panda Coins now trading on the Shanghai Gold Exchange (SGE)

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• Ronan Manly
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In an important development for the Chinese Gold Market, the Shanghai Gold Exchange (SGE) has just launched a physically delivered contract for trading Chinese Gold Panda coins.

With this new contract, both institutional and individual investors in China can now trade and take delivery of China's national gold bullion coin, the Gold Panda, direct from the SGE.... Continue Reading

Why the SEC Keeps Rejecting Bitcoin ETF Listings

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• JP Koning
• 2 Comments

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So far, all applications submitted to the SEC to list Bitcoin ETFs have been rejected. On the surface this appears strange given that a large number of commodity ETFs have been successfully listed on US exchanges.

Does the SEC have a bone to pick with Bitcoin or is in some way anti-Bitcoin? The evidence would suggest not. Rather, the SEC has a requirement that the exchanges it... Continue Reading

As Emerging Market Currencies Collapse, Gold is being Mobilized

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• Ronan Manly
• 1 Comments

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As key emerging markets such as Turkey and Argentina see their currencies rapidly weakening, there is concern that an emerging markets currency crisis may be brewing. The Brazilian Real and South African Rand have also come under pressure, and in Asia the Indonesian Rupiah and Indian Rupee are now displaying weakness against the US Dollar. Add in the ongoing currency crisis in... Continue Reading

Annual Mine Supply of Gold: Does it Matter?

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• Ronan Manly
• 1 Comments

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There is a relative fixation in the gold industry on new gold mining supply, and the prospects of unextracted gold reserves running out within the next few decades. However, current in-ground gold reserves are not the full picture, since in-ground gold 'resources' are far larger still.

But beyond annual gold mining output, its important to remember that the world's... Continue Reading

LBMA at the Movies: Golden Turkeys

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• Ronan Manly
• 6 Comments

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The London Bullion Market Association (LBMA) has recently published a series of short videos claiming to explain 'Who They Are' and 'How the OTC precious metals Markets Work'.

But a quick glance at the content confirms that nearly none of the subject matter addresses the questions set by the titles. Are they deliberately avoiding the questions? If the answer is yes, then it... Continue Reading

Spotlight on the HUI and XAU Gold Stock Indexes

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• Ronan Manly
• 1 Comments

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Take a quick look at most gold investing websites or indeed general investing websites and you will invariably see the names of the HUI and XAU gold mining indexes displayed alongside their respective index 'prices'. But what are the HUI and XAU indexes, how are they constructed, and who operates them? And which gold mining stocks do they hold? And how do the two indexes differ? Continue Reading

Turkey’s Attempt to Mop Up Mattress Gold

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• JP Koning
• 2 Comments

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The existence of "mattress gold" is believed to inhibit the growth of bank intermediation. By encouraging Turks to bring their gold to banks to be deposited, Turkish authorities believe that overall engagement with banks will increase, presumably leading to faster economic growth. This post explores some of the mechanisms the Turkish State has instituted to draw mattress gold into the... Continue Reading

Chinese Gold Market: Still in the Driving Seat

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• Ronan Manly
• 6 Comments

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With Chinese wholesale gold demand running at over 1000 tonnes for the first six months of 2018 as indicated by SGE gold withdrawals, China's gold market has to principally meet this buoyant gold demand from the key supply sources such as domestic mine production, gold imports and gold recycling. With Chinese domestic gold production lower in 2018 than in 2017 and 2016, it will be... Continue Reading

How Much Gold is in the FIFA World Cup Trophy?

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• BullionStar
• 3 Comments

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A sporting trophy revered by the elite footballers of the world. A trophy with near mythical status in the eyes of players and fans alike. A trophy held aloft by a select few captains in its less than 50 year history. A legendary trophy made of gold.

Designed in 1970 by Italian Artist artist Silvio Gazzaniga, the FIFA World Cup Trophy is, in the words of its creator, "a... Continue Reading

Gold’s Price Performance: Beyond the US Dollar

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• Ronan Manly
• 3 Comments

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The mainstream media's fixation with the US dollar price of gold is constant and non-stop, even more so as the first half of 2018 drew to a close and a wall of commentary and headlines erupted about the price of gold in US dollar terms slipping on a 6-month measurement scale.

However, it is not the full story, because in some major national currencies as well as in... Continue Reading

The Shareholders Gold Council (SGC) – “Just don’t mention the Gold Price”

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• Ronan Manly
• 5 Comments

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A new Shareholders Gold Council, led by hedge fund Paulson & Co, has recently made headlines with proposals to put the spotlight on the gold mining sector and its underperforming share prices by using an alliance of institutional investors to apply pressure and accountability to gold mining company CEOs and Boards. All very well, but this Council's strategy has one major shortcoming in... Continue Reading

Cashless Society, Negative Rates, and Hyperinflation – Pt. 2

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• BullionStar
• 5 Comments

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Imagine a country in which banks hold virtually no cash at all. A country where if you walk into a bank branch, the clerk won’t be able to help you make a deposit. A country where there’s a good chance that if you grabbed a wad of cash and walked into an electronics store or a major nightclub, they wouldn’t be able to assist you in buying a new computer, nor get your drink on.... Continue Reading

Singapore, Brunei, and the $10,000 Banknote

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• JP Koning
• 5 Comments

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This post talks about Singapore and Brunei's $10,000 note, the most valuable banknote denomination in the world. It delves into the historical monetary relationship between the two nations. Continue Reading

Sovereign Money Referendum: A Swiss Awakening to Fractional-Reserve Banking?

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• Ronan Manly
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In Switzerland, a country famous for its banking sector, a referendum calling for a ban on the ability of commercial banks to create money has just been held.

While approximately 75% of those who voted rejected the proposal, the fact that 25% of the votes (over 440,000 people) endorsed an end to fractional-reserve banking where commercial banks create money out of thin air... Continue Reading

Investing in Platinum - the Noble Metal

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• BullionStar
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As a recognized investment precious metal, many of the world's leading refineries and mints now offer investment grade platinum bars and platinum coins within their physical precious metals product suites.

These include minted platinum bars from the famed refineries of Heraeus, Valcambi and Argor-Heraeus, and platinum bullion coins such as Royal Canadian Mint Platinum 1 oz... Continue Reading

Gold and the Monetary Blockade on Iran

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• JP Koning
• 2 Comments

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Gold was used as an intermediary commodity for evading sanctions imposed on Iran, particularly in 2012-13. Gold has certain properties, including a high value-to-weight ratio and good liquidity, that made it convenient. Given that sanctions will probably be reimposed, what will gold's role be in the next round of Iranian sanctions? Continue Reading

May 2018 Gold Market Charts

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• Gold Market Charts
• 3 Comments

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The latest issue of BullionStar's Gold Market Charts has now been published and highlights a number of recent developments in the world's major physical gold markets.

For the year-to-date, gold withdrawals from the Shanghai Gold Exchange (SGE) are already running at a cumulative 749 tonnes between January and April, which if annualised would represent a record year of gold... Continue Reading

The Future of Cash: Iceland vs. Sweden

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• JP Koning
• 2 Comments

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When people think about the future of cash, an increasingly cash-lite Sweden is one of the benchmarks that is often brought up. Yet Iceland should not be ignored, since not only does it lead Sweden in digital payments adoption, but it is also experiencing a resurgence in cash usage. Continue Reading

BullionStar Celebrates Customer Order Number 100,000!

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• BullionStar
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Since it's establishment in 2012 in Singpore, BullionStar has had many notable achievements, and recently reached another milestone by completing its 100,000th customer order, awarding a PAMP gold bar to the lucky customer who placed this order.

With customers from over 100 countries worldwide for both precious metals purchases and secure precious metals storage, BullionStar is... Continue Reading

BullionStar Adds Bitcoin Cash & Litecoin as Payment Options

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• BullionStar
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Bitcoin Cash and Litecoin have now been added to the list of transactional currencies which can be used to purchase gold bullion and silver bullion at BullionStar.

Since May 2014 BullionStar has accepted Bitcoin as a payment option and was one of the first bullion dealers worldwide to do so. Now with the addition of Bitcoin Cash, BullionStar again innovates and customers can... Continue Reading

Turkey and Russia Highlight Gold’s Role as a Strategically Important Asset

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• Ronan Manly
• 10 Comments

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With political risks between national states on the rise, the locations in which the world's central banks store their gold reserves becomes more critical. Recent news that the Central Bank of Turkey moved all of the New York stored gold back to Europe highlights that the risks of gold confiscation are real and substantial. Likewise, Russia, the world's fifth largest sovereign gold... Continue Reading

Types of Gold Standards

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• JP Koning
• 4 Comments

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From one version of the gold standard to the next, society benefited from the price stability afforded by a link to gold while being liberated from some of the metal's inconvenient physical burdens. Continue Reading

Spoofing Futures and Banging Fixes: Same Banks, Same Trading Desks

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• Ronan Manly
• 4 Comments

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While the US CFTC and Department of Justice are bringing enforcement proceedings against investment banks and their traders for spoofing trades and collusive manipulation of prices in precious metals futures markets over the 2008 to 2014 period, there is a notable absence of prosecutions and penalties against the same banks for collusive manipulation of prices in the London Gold and... Continue Reading

US Gold and Silver Futures Markets - "Easy Targets"

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• Ronan Manly
• 2 Comments

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Following the charging of five precious metals traders and three banks in January 2018, Commodities Futures Trading Commission and Department of Justice documents reveal a global criminal cabal of 16 traders operating in at least four major financial institutions between 2008 and 2015 to defraud COMEX gold and silver futures markets.

This new guest post by Allan Flynn,... Continue Reading

China’s Secret Gold Supplier Is Singapore

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• Koos Jansen

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Singapore has been a major gold supplier to China since 2013, which was previously not publicly known. According to Statlink, Singapore net exported 102 tonnes to China in 2017, a record year and up 177 % from 2016. In total China net imported an estimated 1,082 tonnes in 2017, while SGE(I) withdrawals accounted for 2,030 tonnes. Continue Reading

Audits Of US Monetary Gold Severely Lack Credibility

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• Koos Jansen

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According to the United States Treasury its 261 million ounces (± 8,100 tonnes) in official gold reserves are fully audited and accounted for. Because for many decades rumours are making rounds this gold has been covertly sold, in this essay we’ll thoroughly scrutinise the audits – indirectly evaluating the accuracy of the gold claims by the Treasury. What we’ll encounter is a... Continue Reading

Central Banks Care about the Gold Price – Enough to Manipulate it!

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• Ronan Manly
• 6 Comments

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Senior central bankers are both terrified of and in awe of gold. Gold to these central bankers is like the sun to vampires.

Central bankers are terrified of gold since its an inflation barometer and an indicator of the relative strength of flat currencies. They are in awe of gold since these same central bankers respect and understand gold's value and power within the... Continue Reading

Money as a Measuring Stick

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• JP Koning
• 3 Comments

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Imagine if the world's metre sticks all grew or shrunk a bit each year. That would make for a confusing system of weights and measures, wouldn't it? Well, that is exactly what happens with money.

This post looks at the history of the Pound, the weight and the currency, right up to the modern day Pound Sterling. Continue Reading

Why the World’s Central Banks hold Gold – In their Own Words

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• Ronan Manly
• 9 Comments

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The world’s central banks and monetary institutions are attributed to hold a combined 33,800 tonnes of gold between them. Why do these central banks hold so much gold and what are their motivations for doing so? BullionStar asked the top 40 central bank gold holders to explain why they hold gold as a reserve asset on their balance sheets. Many of these central banks replied, with a... Continue Reading

BullionStar Wins 1st Place in Bullion Directory’s 2018 Awards

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• BullionStar
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BullionStar has won a Bullion Dealer of the Year award in the 2018 “Bullion Directory” Awards. Bullion Directory is a global online directory of the world’s precious metals dealers, listing over one thousand bullion dealers globally, and its awards are decided by the voting public.

With competition from across the world, BullionStar secured first place in the ‘Rest of... Continue Reading

LBMA Alchemy and the London Gold and Silver Markets: 2 Steps Back

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• Ronan Manly
• 4 Comments

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For more than 3 years now, the London Bullion Market Association (LBMA) has promised to publish trade reporting for the London Gold and Silver Markets. After a series of broken promises in 2016, the heads of the LBMA stated categorically throughout 2017 that this trade reporting would begin in Q1 2018. Just as Q1 2018 is about to end, the LBMA has now announced there will be no... Continue Reading

Why QE Didn’t Send Gold Up to $20,000

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• JP Koning
• 17 Comments

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Because quantitative easing created trillions in new dollars, many people thought that this would lead to a hyperinflation and a much higher gold price. Yet this didn't happen. This post explores why. Continue Reading

The Blockchain Beyond Bitcoin

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• BullionStar
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With the recent emergence and recognition of a diverse range of crypto currencies, the technology of blockchain is rapidly gaining traction as a profound innovation that has potential to alter entire industries.

Described in quite simple terms in the white paper that laid the foundations for Bitcoin, the design principles behind blockchains are now also being used in newer... Continue Reading

The Celebration of Chinese New Year

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• BullionStar
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New Year and the Spring Festival are a central part of Chinese tradition in mainland China and in Chinese communities all across the world. Chinese New Year is a movable event which this year falls on 16 February and which ushers in the “Year of the Dog”, the 11th year in the Chinese Zodiac calendar.

Chinese New Year is an auspicious time associated with many customs and... Continue Reading

The Role of Gold as Turmoil Hits Financial Markets

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• BullionStar
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With continued selloffs this week led by US stock markets, and now moving into Asian markets, the complacency that had set in in financial markets has come to an abrupt halt as volatility reappears. Aside from the equity bourses, the emerging cryptocurrency markets have also suffered a multi-week selloff which has left investors unclear as to what lies ahead.

In such market... Continue Reading

Should We Restore the Gold Standard?

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• JP Koning
• 18 Comments

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Would it make sense to rebuild an international gold standard like the one we had in the late 1800s? Over the years I've been following two economists who have debated this very topic on multiple occasions. Larry White says the idea has merit, David Glasner believes it isn't worth the risk. Let's look at one or two of the most important themes running through the White v Glasner debate. Continue Reading

What’s Happening (or Not) at the LBMA: Some Updates

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• Ronan Manly
• 3 Comments

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Recently, the London bullion market has seen some change in the form of monthly reporting of the quantities of gold and silver held in the LBMA vaults in London. These vault figures are reported by the London Bullion Market Association (LBMA). The LBMA is also involved in advancing a trade reporting project which will for the first time publish trade data about the London precious... Continue Reading

Your Weight in Gold

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• BullionStar
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There are many phrases and sayings in the English language that illustrate the high-regard with which societies hold for gold. These phrases are embedded into natural language and have evolved over time based on an intrinsic appreciation by civilizations that gold is rare and of high value.

One example is the saying “worth your weight in gold”. Although a metaphor, what... Continue Reading

Bitcoin Backwardation, Gold Contango

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• JP Koning
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Since bitcoin futures began to trade on the CBOE in December 2017, they have often traded below bitcoin's current price, a pattern called inversion or backwardation. Gold, which is a similar asset in many respects, almost never inverts. It is always in contango. This article explains why this pattern has prevailed and hypothesizes that it is likely to continue in the future thanks to... Continue Reading

US Gold Reserves, Of Immense Interest to Russia and China

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• Ronan Manly
• 22 Comments

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Recently, Russian television network RT published a number of articles on its website discussing US official gold reserves. These articles were based on extensive answers and opinions given to RT by BullionStar precious metals analyst Ronan Manly, and covered topics such as the location and quality of the US gold reserves, and how the accumulation of Russian and Chinese gold reserves... Continue Reading