-- Posted Wednesday, 25 March 2009 | | Source: GoldSeek.com

Gold Investments Market Update

Gold and silver fell yesterday ($923.30 down $29.70; Silver $13.34 down 52 cents) on profit taking and renewed risk appetite which saw equities rally internationally (prior to a late sell off in the US) and the dollar rally after its recent sharp falls.

Macroeconomic, systemic and monetary risk has seen the dollar, the euro and more particularly sterling fall versus gold in recent months. Gold would have likely risen by  much more were it not for likely central bank and bullion bank gold sales which have artificially capped the price.

International quantitative easing, zero percent interest rates and competitive currency devaluations will see other fiat currencies come under pressure in the coming months. So called “safe haven” currencies such as the Yen and the Swiss franc have fallen in recent weeks and are also likely to come under serious pressure in the coming months. The Swiss have in recent weeks been devaluing the Swiss franc by intervening in currency markets and selling millions of Swiss francs and buying Euros.

The global financial and economic meltdown is leading to central banks internationally attempting to devalue their currencies and this has profound implications for investors and savers as it will lead to significant inflation in the coming months. An early manifestation of this and early warning signal was seen in the UK yesterday where the consumer price index rose to 3.2 per cent.

International quantitative easing, zero percent interest rates and competitive currency devaluations will likely see all fiat currencies fall against the finite currency that is gold and we have likely only seen the early stages of this in recent months.

Mark O’Byrne, Executive Director

Web: www.gold.ie

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Gold and Silver Investments Limited, trading as Gold Investments is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

-- Posted Wednesday, 25 March 2009 | Digg This Article | Source: GoldSeek.com

Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer