-- Posted Tuesday, 11 January 2011 | | Source: GoldSeek.com
The premium on gold bars is now at a 2-year high. Gold has continued to rise after the recovery before the close in New York and was Fixed at $1,381.00 €1,067.65 and stands at $1,383 before New York’s opening. Physical demand for gold will be the theme for 2011 we believe as the darkening financial and monetary clouds darken, even in the face of greater growth worldwide. The euro has fallen through the $1.30 level and is staggering to lower levels. With both the dollar and the euro falling, we may be entering a period where the euro’s fall will accelerate ahead of that of the U.S. dollar.
We keep looking for real and potentially effective measures to reform the monetary system, but we can’t find them. The up-coming meeting between Presidents Sarkozy and Obama may have the intention of monetary reform, but it will take a meeting and cooperation of the heads of the global heads of state and central banks to hammer out reforms that will benefit the globe not just some of the globe’s interested parties. Even a plan among the developed world would be inadequate, particularly in view of China being the world’s largest economy by 2020 and likely then having the world’s most important currency then.
Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that gives perspective to macro-economic factors from oil to currencies covering the pertinent global gold markets that directly affect the gold price and some that simply influence it. It is a “must-read” for all who want to understand why the gold price is moving as it is and why. It also aims to help you understand why currencies and today’s national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too]. Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Gold - Very Short-term
The gold price this morning is strong, but may struggle to keep that strength today in New York today.
Silver – Very Short-term
The silver price this morning is strong, but may struggle to keep that strength today in New York today.
Gold Price Drivers
Some believe that U.S. gold investors intend to slowly move away from gold. When we look at the fall in gold E.T.F.s it may look as though this is true, but we do not believe that to be so. For a moment let’s suppose it is true. We are watching that gold move from the U.S. overseas to both Europe and the rest of the world quickly and with little impact on the gold price. Should U.S. investors deem it prudent to sell their U.S. held gold and buy physical gold to be held outside the States they would be following the growing pattern set for decades by the emerging world. It’s all a case of how much you trust the developed world’s money systems. The emerging world doesn’t.
Just take a look at the change in the level of respect for bankers in the last few years. And banks are the veins and arteries of everybody’s financial world. Is it any wonder that investors want to hold an investment outside the monetary system? Prudence demands investors do just that. We are issuing a series on “The Financial Earthquake” that lies ahead in the years to come, in our newsletters. We suggest you subscribe to the Gold Forecaster and Silver Forecaster where you can read these. It is there that we will we will detail all the factors that will join to jeopardize the global economic landscape in 2011, keep you in touch with their progress and give you our forecasts for 2011.
Regards,
Julian D.W. Phillips
-- Posted Tuesday, 11 January 2011 | Digg This Article
| Source: GoldSeek.com
