Three Possible Outcomes To Gold Scenario

Stock markets in Asia and Europe continued last week’s show of strength in trading sessions this Monday morning with indications that New York will follow suit.

Base metals and miners were among the leaders but last weeks fall in gold and silver gathered pace hitting $874 an ounce before staging a slight recovery to $880 an ounce possibly only due to short covering.

Rebounding equity markets, an improvement in sentiment in the belief that government bail outs are showing signs of working, increased investor risk appetite and the IMF’s impending sale of 403 tonnes of gold are taking their toll on precious metal prices. Read more

Gold Bubble Driven By Inflationary Concerns

Gold stays firmly in the news as today’s’ ‘Prudent Bear’ financial column in the UK’s  Daily Telegraph and written by Martin Hutchinson suggests that ‘ a gold bubble driven by inflationary concerns may (now) be inevitable.’

Quantative easing, politico speak for money printing, is having its inevitable effect on the dollar, pound and Swiss franc as they decline against currencies that have yet to embrace this questionable economic cure, although the Euro has so far not yet succumbed to the temptation.

We don’t know how long for, but sooner rather later seems a safe bet. Read more

Gold Slips | Is It Time To Buy The Dips

Gold slipped below $900 an ounce yesterday, falling as low as $892 an ounce during trading as investors took the chance to cash in on profits made from the recent rise.

We don’t think that this is a signal to “back up the truck” it is just that gold sector players are very twitchy in these most volatile times, particularly with the uncertainty that the Obama bail out plan will prove sufficient to prevent economic catastrophe from becoming a reality. Read more