Gold and silver by palitos83

VIEWS: 2 PAGES: 2

									Gold strengthens again- can big brother fix any economy any more?

Gold is showing distinct signs of strength as currencies continue to
weaken. Even mighty Germany's growth appears to have come to a halt and
central banks can no longer be seen as economy rescuers

Author: Julian Phillips

BENONI -

In New York yesterday gold rose $13.00, while the SPDR gold Exchange
Traded Fund saw 12 tonnes sold. Overnight, in Asia, gold rose another
$12. After London opened, gold rose another $11. The euro was stronger at
$1.4377 up nearly a cent. In the euro the gold price was €1,235.58 up
€23. The Swiss Franc and the Yen are now being forced higher again at
0.7828 and the Yen at 76.84 to the dollar. Today saw the gold price fixed
at $1,779 up $41 on yesterday and in the euro at €1,236.19 up €22.
Thereafter it slipped only slightly. The euro remained steady at 1.4387.

Silver was 20 cents stronger at $39.40. It is holding well in the face of
steady heavy selling in the U.S.

When a man borrows as much as his income allows, he feels he is getting
the best out of life. But when his income suddenly drops he feels like
Mr. Macawber who said, "Happiness is earning twenty pounds and spending
nineteen pounds and sixpence.   Misery is earning twenty pounds and
spending twenty pounds and sixpence.   Consumers across the developed
world understand that.   Then banks understood it, but big brother came
to their rescue.   Then Eurozone members felt it individually, but big
brother came to their rescue.   Now big brother is feeling the same.

So where is help to come from?   Germany has reported a virtually flat
economy, after France did.   Can they afford to provide weaker members
with a Eurobond that lets them spend again?

The euro is stronger today [sorry, we mean; not as weak as the dollar,
today] but its future has darkened.   Currencies have started to fall
against gold today.

When the dollar was de-linked from gold Nixon imposed a 10% import
surcharge on all imports.   Are we going to experience such measures in
the developed world again?

Today, the besieged Angela Merkel and President Sarkozy are behind closed
doors trying to work out measures to remove the crisis in the Eurozone,
but against a backdrop of ‘stagflation or deflation.   The days have come
when structural changes are the only ones left to do the job.   More
patches will simply weaken the structures more. Expect silence from the
two today and expect it for another month too.   We don't think gold will
wait much longer though. And silver has started to move with gold again
so watch it carefully.

Julian D.W. Phillips for the Gold & Silver Forecasters -
www.goldforecaster.com andwww.silverforecaster.com
Source:
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=133556&sn=Detai
l&pid=34

								
To top