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Gold prices in 2013 haven't performed as well as the previous few years – but Washington continues to give us plenty of reasons to buy the yellow metal.
This week showed us how sensitive the price of gold can be to news from Washington.
On the heels on the down-to-the-wire U.S. government budget and debt ceiling deal, gold prices moved abruptly higher and soared above the key $1,300 level.
In afternoon trading Thursday, spot gold was up 3.17 %, or $40.70, at $1,324.40.
Reasons for gold's sharp gains Thursday:
- The realization that the government deal simply "kicks the can" down the road yet again. Under the terms of the Senate deal, the government will only be funded through Jan. 15 and the debt ceiling debate comes up again Feb. 7.
SHUTDOWN DRAMA A DISTRACTION
I view the budget, debt "ceiling", and government "shutdown" drama as one big circus, albeit a larger distractions to the masses. Consider it part of the Roman Empire's "Bread and Circus" Entertainment Strategy. Consider a new policy (order) by the new FED Consumer Financial Protection Bureau recently:
What's more important is the development that Chase Bank, N.A. just notified some customers in a letter mailed to each of its small business account holders (Chase BusinessSelect Checking and Chase Business Classic) on Oct 8 that they will no longer be able to send outgoing international wire transfers as of Nov. 17. In addition, they will be limited to $50,000 worth of account activity (deposits, withdrawls, and check and ATM transactions) per month. ( They are now being "protected" by the FEDS).
In addition, HSBC USA just informed its best retail customers (Premier Account Holders) it too will discontinue executing outgoing international wire transfers as of Nov. Other banks are likely to do likewise in the future. Thus, we are now having actual capital controls imposed on Americans to keep all the money (U.S. Dollars) at home. I imagine the end game can not be that far away.
in light of your article, should I get out of U.S. currency and into Canadian currency? I'm afraid my U.S. funds might be susceptible to coming uncertainties on the forefront?
What say you?
Thank you
FOREIGN COUNTRIES DO IT DIFFERENTLY
I think you have to reside in Canada and show documentation to prove it when you open your bank account, in person. They charge you a fee to convert currency to Canadian dollars. Similar requirements exist in many other foreign countries, as well. In addition, you need to speak the local language if its not English. Most bank personnel speak primarily the local language. They are not interested in "bilingual" outside of the U.S.