Swiss government increased its investment in physical gold and turns away paper gold backed by the US dollar ; consumer prices rose with inflation reaching 2% for the first time in six years in the United States ; Russia lodged a complaint with the WTO against US customs duties.Switzerland chooses physical gold over paper gold
Switzerland has decided to switch from paper gold to physical gold for an amount of 700 million Swiss francs and to store it on its own territory. "The 700 million represents only 2% of total assets, but this decision symbolizes a reorientation of global investment," said Claudio Grass, a renowned precious metals advisor at RT.
“Physical gold is the best way to protect yourself and generate gains over decades. If you had bought $100,000 worth of gold in the mid-1970s, your investment today would be worth more than $2 million," the analyst said.
The government is seeing a geopolitical shift from the West to the East, so it is why Switzerland is buying more physical gold to replace paper gold based on the US dollar. Given the current circumstances Switzerland opts for security and as in many countries the Swiss government chooses physical gold as the guarantor of the country's economic health.
The global debt burden continues to rise, with more than 65 percent of the world's total currency reserves in U.S. dollars, Grass notes. "Holding physical gold is certainly the best cover against all kinds of possible financial risks"Consumer prices rose, with inflation reaching 2% for the first time in six years in the United States
Consumer prices in the US rose as inflation reached the 2% FED target for the first time in six years.
Over the past 12 months, the personal consumption expenditure (PCE) price index jumped +2.3%, the largest increase since March 2012.
The acceleration in inflation last month occurred despite moderate consumer spending. The government said that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose +0.2% last month.
The economists interviewed by Reuters predicted a 0.4% increase in spending in May. Spending was held back by a decline in spending on household utilities. Purchases of durable goods such as vehicles increased slightly by 0.1% last month. Purchases of non-durable goods increased by 0.4%. Spending on services increased by 0.1%.
In May, personal income rose 0.4% after rising 0.2% the month before. Salaries increased by 0.3%. The savings rate rose to 3.2%.
The U.S. central bank raised interest rates early this month for the second time this year and expects two more rate hikes by the end of 2018, according to REUTERS.. Russia files WTO complaint against US tariffs
Russia is now on the list of countries contesting US tariffs on steel and aluminum, calling to the World Trade Organization (WTO) to resolve the dispute.
This complaint denounces the numerous violations of WTO rules by the United States. In addition to Russia, China, India, the European Union, Canada, Mexico and Norway have already sent similar requests.
Russia has informed the WTO that if the situation does not change, the Russian government will be obliged to apply retaliatory measures against the United States to the amount of 538 million dollars.
Russia will penalize, the American automotive sector. The country imports 837 million dollars worth of American cars, which represents 7.6% of what Russia imports from the United States.
China, Russia, Japan, India, Turkey and the European Union have accused the United States of protectionism and threatened to retaliate with high taxes on US goods.
Source: BUNKER GOLD&SILVER