PRICE OF GOLD

Hokitika Guardian, 11 January 1935, Page 6

PRICE OF GOLD

JAPAN ANNOUNCES INCREASE

|United Preea Association—By Electric Telegraph—Copyright.)

(Received this day at 1.25 p.m.) TOKIO, January 10.

It is officially announced that the price of gold will be raised to-morrow from 2.95 yen per gramme to 3.09 for the purpose of a readjustment of the vis-a-vis London gold market and keeping the yen exchange steady.

GOLD MINING SHARES RISING

(Received this day at 1.30 p.m.) LONDON, January 10.

(The “Evening SStandlard” says gold-mining shares are already rising, being indirectly helped by the Japanese Government’s decision to increase /the domestic price of gold. This is taken to imply that gold will not recede greatly from the present sterling price.

EFFECT ON COMMERCE ‘ln the search for influences whi c 'h may assist the recovery of international trade the higher price of gold is a factor which has not received the attention that it deserves,” says a review published by J. Henry Schiode-i and Company, “An important result of the high price that gold fetches in the depreciated currencies of America and the sterling ibl'Oc is the increased buying power which it puts into the hands of certain countries that are in serious need and are certain to exercise this power by increasing their puichases in the world maikct. “So far the increase in world production, .. which rose from 20,712,981<>z. in 1930 to 25,369,8790 z. in 1933, has been largely absorbed by speculative purchases and by hoarding . o n the part of central banks and individuals. It seems inevitable, howin ''-time i-tbe 'increase in the gold backing for credit will have the same effect on the present generation as the discovery and development of the Rand g>oldfie<.d had in the years between 1897 a nd 1913 a p e r:M of active and prosperous enterprise diversified by a crisis m America and terminated only by the war. As a stimulus to this revival of international activity the increased buying power conferred on th e gold prviduoing countries must have ,a powerful influence.”