Gold Is A Reserve Of Safety - ECB President

Gold Is A Reserve Of Safety - ECB President

Today’s AM fix was USD 1,317.00, EUR 962.09 and GBP 813.16 per ounce.
Yesterday’s AM fix was USD 1,308.50, EUR 959.87 and GBP 813.09 per ounce.

Gold climbed $40.20 or 3.14% yesterday, closing at $1,319.70/oz. Silver rose $0.53 or 2.49% closing at $21.80. Platinum jumped $44.84 or 3.2% to $1,432.74/oz, while palladium soared $23.50 or 3.3% to $737.50/oz.

Gold is 3.5% higher for the week and headed for its best weekly gain in two months due to concerns about the latest episode of fiscal "can kicking" in Washington after U.S. politicians reached another temporary budget deal.

Gold in USD and Debt Ceiling - Quarterly, 1933-2013 (Bloomberg)

Dr. Mario Draghi, former Governor of the Bank of Italy and the current President of the European Central Bank (ECB), during an open forum at Harvard’s Kennedy School of Government, answered a question about gold and why central banks want gold and what value it offers.

Tekoa Da Silva, Bull Market Thinking Question: Dr. Draghi what are your thoughts on gold as a reserve asset, you have the central banks like China and Russia increasing their reserves especially in the last 10 years, Germany for example asking for its holdings back from New York, it doesn't offer any income unless its leased, why do you think they would want that and what value do you think it will offers in your opinion?

Mario Draghi, ECB. Answer:
“Well you’re also asking this to the former Governor of the Bank of Italy, and the Bank of Italy is the fourth largest owner of gold reserves in the world, which is out of all proportion to the size of the country. But I never thought it wise to sell it, because for central banks this is a reserve of safety, it’s viewed by the country as such. In the case of non-dollar countries it gives you a value-protection against fluctuations against the dollar, so there are several reasons, risk diversification and so on. So that’s why central banks which have started a program for selling gold a few years ago, substantially I think stopped…most of the experiences of central banks that have leased or sold the stock of gold about ten years ago, were not considered to be terribly successful from a purely money viewpoint.”

Reuters Precious Metals Poll (Q4, 2013)

Reuters: Where do you expect gold prices to end this year?

GoldCore: We expect gold prices to end 2013 around the $1,450-1,550/oz. This would be a gain of between 10% and 17%.
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U.K. Gold Exports to Switzerland Fell in August From Record Levels

Russian Launches Physically Backed Gold ETF On Irish Stock Exchange and Moscow Exchange

U.S. Mint October Gold-Coin Sales Exceed September Total

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