Will it make any difference to gold and silver whichever of these appalling presidential candidates gets elected to govern what still remains the world’s most powerful nation? Obama has accelerated the decline in the nation’s superpower capability, arguably Bill Clinton’s legacy, and the erosion is set to continue with his wife in office but would […]
Gold remains stuck in its channel either side of $1580 an oz. despite the fillip given it yesterday by the chief of the Bundesbank when it gained $10 only to fall back today after the US open to $1587 an oz.
It is estimated that by the end of last week Gold traded ETFs had increased their bullion holdings to a record of almost 1400 tonnes while sales of gold coins by the US Mint is running at double that of a year ago.
Morning trading in Asian markets saw gold under some selling pressure with traders pushing the price below $938 an ounce but Europe’s opening quickly saw the price back above $940 an ounce.
Tuesday morning trading on the London Bullion Market saw gold drop back to steady at around $895 an ounce from Mondays high of $916.30 on profit taking and conversely the dollar weakening against the euro.
The Obama effect has started with gold bullion trading in Europe reflecting investors doubts over the level of spending to ‘kick start’ the economy envisaged by the new administration.
Although the US dollar has been showing strength against the euro, and particularly the pound sterling, the long term consequences of an unbridled Obama spending spree is bound to have a detrimental effect on the value of the dollar before very long.
Not that the European economies are looking any better as the banking sector follows in the wake of its US counterparts.
This article has been reproduced by kind courtesy of Bullion Vault. It is a timely reminder of the arguments for and against investing in gold in a time of financial crises. Questions are posed that you will need to consider if you are either holding or contemplating buying gold in todays highly volatile economic climate.
Why Gold? Why Now?
For the serious and financially secure investor large bullion bars are usually available at lower premiums than smaller shapes and coins.
A negotiable precious metal with a trading weight and shape, for example an ingot or bar and, in certain cases, coin.
A precious metal coin that is legal tender and whose market value is only dependant upon its content and not its face value or collectible value