This Month in Gold – August 2013

Singapore Opens 200 Metric Ton Silver Vault
Bloomberg – Malca-Amit Global Ltd. added a 200 metric ton silver vault to its five existing gold vaults at the Singapore FreePort. The new silver vault will be an affordable storage alternative for the less expensive white metal, since the gold vaults are already fully reserved due to ongoing demand for physical precious metals from wealthy Asians. The number of Asia-Pacific high-net-worth individuals increased by 9.4% last year, and 43% of global economic growth from 2007-2012 is attributed to China. Singapore has been rebranding itself as a bullion-trading hub, with UBS, Deutsche Bank, and JPMorgan Chase also opening Singapore metals vaults over the past few years.
Read Full Article>>

China May Become World’s Biggest Gold Consumer
Reuters – Chinese gold demand could reach a record 1,000 metric tons this year, surpassing India as the largest global bullion consumer, according to the World Gold Council. India’s gold demand is expected to reach about 850 metric tons. The Shanghai Gold Exchange delivered more physical gold in the first half of 2013 than in all of last year, even in the face of huge premiums. While jewelry will be the larger Chinese demand segment, the fastest growing will be investment demand. “Jewelry demand is likely to increase globally this year as a proportion of overall gold demand for the first time in 12 years,” said Marcus Grubbs, managing director of investment for the WGC.
Read Full Article>>

New “Stretchy” Gold Developed for Medical Implants
Wired – Chemical engineers at the University of Michigan have invented a stretchy material made from gold and polyurethane that could be used for pacemakers or brain implants. Unlike traditional circuits, this new material can still conduct electricity when stretched. The stretchy gold could solve the engineering problem of implanting electronic systems into the curved and irregular surfaces of the human body. The research team plans to test prototype implants in rat brains.
Read Full Article>>

Detroit Files for Record-Breaking Bankruptcy
Toronto Star – Detroit has filed the largest municipal bankruptcy, both in terms of debt and city size, in the history of the Unites States. Since the 1950s, a mere 60 Chapter 9 municipal bankruptcies have been filed. The municipal bond market, public unions, and other struggling cities will carefully watch how Detroit structures its debt reduction and recovery plan. In particular, the restructuring of retirement benefits could set an important precedent in municipal bankruptcies. Detroit’s debt is estimated to be as high as $20 billion, and the bankruptcy process could take years to complete.
Read Full Article>>

Brazilians Protest Sky-High Consumer Prices
New York Times – Sparked by unusually high public transportation fees in Sao Paolo and Rio de Janeiro, Brazilian consumers have been protesting extremely high consumer prices. Some smart phones cost twice as much as in the US, Ikea-like furniture costs six times more, and a cheese pizza can run $30. The high prices are blamed on protectionist manufacturing policies, transportation bottlenecks, and a tax system that favors consumer taxes over income taxes.
Read Full Article>>

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!