This Month in Gold – July 2015

Coin Sales Soar, Driven by Greek Crisis and Low Prices
Reuters – The sale of gold and silver coins soared in July, with the Greek financial crisis and low prices pushing demand. With more than a week left until the end of the month, sales of US Mint American Eagle gold coins had already vaulted above 110,000 ounces, the highest monthly total since April 2013. July sales eclipsed the total of 76,000 ounces sold in June, and 21,500 ounces sold in May. On July 7, the US Mint temporarily sold out of its 2015 American Eagle silver bullion coins due to a “significant” increase in demand. Sales did not resume until July 27.
Read Full Articles Here, Here, and Here >>

China Discloses Gold Holdings
The Wall Street Journal – China released an update on its gold reserves for the first time in six years. At the end of June, China’s gold holdings totaled 53.32 million troy ounces, up 57% from the end of April 2009 when the People’s Bank of China last reported reserves. China’s official holdings are now the fifth largest in the world, behind the US, Germany, Italy, and France. China’s holdings now eclipse those of Russia and Switzerland. Despite the increase, China’s holdings were less than many analysts anticipated.
Read Full Article >>

London Metal Exchange to Accept Yuan as Collateral
Wall Street Journal – The London Metal Exchange (LME) recently announced it plans to accept Chinese yuan as collateral for banks and brokers trading on its platform. The LME is the world largest platform for trading metals, facilitating $15 trillion in metal trades last year. The Chinese currency joins the US dollar, the euro, the British pound, and the Japanese yen as permissible collateral on the LME’s platform. The yuan is now the fifth most used currency for international payments, up from seventh a year ago.
Read Full Article >>

Indians Continue Buying Gold Despite Government Policies
Reuters – Indians continue to buy physical gold despite government efforts to channel money into paper gold that it can more easily track and control. Two-thirds of gold demand comes from rural areas where jewellery serves as a traditional store of wealth. The jewellery trade says the government plans to trace gold deals are unworkable and won’t deter  hundreds of millions of Indians from buying gold to keep their wealth away from the prying eyes of the authorities. If the government proposals fail, gold inflows will continue unabated in a country that accounts for nearly a fifth of global demand.
Read Full Article >>

Greek Banks Reopen; Taxes Soar
Washington Post – Banks reopened in Greece on July 20, after being closed for three weeks. Cash withdrawals remained limited to 60 euros per day. The government imposed a steeply higher sales taxes, ranging from 13 to 23 percent on basic goods. The new taxes affect everything from cooking oil to condoms, as well as popular services, such as taxi rides, restaurant dining, and ferry transport to the Greek islands.
Read Full Article >>

US Facing Steep Pension and Social Security Shortfalls
CNN and US News – Funding shortfalls in US pension systems and the Social Security program reveal deep structural problems in the US economy. According to Pew Charitable Trusts, states are short $968 billion for their pension systems. That represents a $54 billion increase over the year before. The total shortfall is over $1 trillion, when including debt from local programs. Social Security trustees said this month that the disability trust fund will run out of money in late 2016. If Congress fails to act, it will trigger an automatic 19 percent cut in benefits. The trustees also said the Social Security retirement fund will run out of money for full benefits in 2035.
Read Full Story on Pensions >> Read Full Story on Social Security >>

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!