Long Time no Post....

It seems like a long time since the last Mokarimakka post (15 Dec 14), indeed the regularity has waned a little however the markets and global economies have been a hive of activity.

What has happened around the World?, the U.S has increased its bullying tactics on Russia by increased sanctions against the state for it’s actions in the Ukraine; this amongst other factors such as the Oil price crash has almost crippled the Russian Ruble. 

This links nicely to the global Oil price crash, who’d have thought that 12 months ago Oil was trading at $100+ per barrel and at the time of writing is now trading around $60-/+ per barrel!

I do not see prices at this level for too long, this is deflationary in nature so motorists make the most of it while you can.  

Switzerland has been one of the biggest shocks of the year so far; id go as far to say that the un-pegging of the Swiss Franc to the Euro has been one of the most extreme measures taken by a Central Bank notwithstanding QE. 

The un-pegging of the Swiss Franc (CME) to the Euro saw the currency leap in value, effectively increasing domestic prices by 30%; lets be clear, this is almost unprecedented in the FOREX markets, bad news for Switzerland….

What does this have to do with Gold & Silver?

Prices so far this year are up 8.6% and 3.6% respectively, not a bad start to the year I think, how much interest did you earn in your savings account (inflation adjusted)?

More importantly, it is the invisible factors that have yet to come into play over the next 12 – 24 months:

In 2014, Germany repatriated 140 Tonnes of its gold, not much I grant you but it signalled a step change in State’s attitudes to the failing fiscal policies employed by western Central Banks.

Holland repatriated 122 Tonnes out of U.S vaults.

France’s Le Pen has demanded an audit of their 2435 Tonnes of physical inventory.

And now it gets interesting….

From 2011 – 2013 China imported over $70 Billion worth of Gold and the price didn’t move..! 

The impossible has happened.  Price manipulation, Q.E and hedge funds are taking full advantage of near 0% interest rates being offered by Central Banks effectively keeping the Equities and Futures markets afloat, this CANNOT last. 

Imagine blowing up a balloon, blowing it up to normal/safe limits means that the balloon exists in a stable environment, the pressure inside is in equilibrium with that of outside.  However when you blow it up some more (Q.E, 0% Interest rates, Oil Price collapse) the pressure grows inside and eventually the balloon explodes.  There you have the financial markets today.

Heed these words, there is and will be an increasing intensifying global scramble towards gold and away from the endless printing of currency.

Are your eyes open?

Mokarimakka