Monday, 4 February 2013

Japanese Yen Gold has hit an all time high at last - or has it? 2013-02-04

The price of gold in Japanese Yen Gold has at long last hit an all time high in recent days - or has it? The strength of the Yen in recent decades has meant that it has been in the probably unique position where gold had not recorded a price in this bull market that exceeded the high reached in January 1980.

Some websites have said that the 155,000 Yen current price is a new all-time high. However, the Zero Hedge article by GoldCore (citing Bloomberg data) and an article on Bullion By Post state that the 21 January 1980 intraday high was actually ¥204,850. So, according to this, there is a fair way still to go.

The Kitco Yen gold chart shows that the Yen gold price is at new highs for the current bull market.

It is interesting that Ben Davies of Hinde Capital has recently re-stated his view on the Japanese entering the gold market in a major way. This is fascinating, because I am sure that he was well aware of the Yen gold price nearing its 1980 peak. It also coincides with the new policy of the Japanese government and central bank to indulge in realtively extreme Quantitative Easing and inflation targeting.

This is fascinating to watch these developments especially in light of the negative sentiment on the gold market in US dollar terms, in light of its lacklustre performance in the last 16 months.

John Nadler leaves Kitco; goldbugs happy! 2013-02-04

John Nadler has left Kitco after becoming the analyst that all goldbugs love to hate over the past few years for his relentlessly bearish commentries that were crystallised in his last piece that predicted gold declining for the next few years. It was posted on Kitco radio last week and, strangely, cannot now be found online!

Articles dealing with Nadler's departure:

» Daily Dispatches
"Kitco cans analyst Nadler; gold rises $5.50"

and the original press release: