-- Posted Tuesday, 7 June 2011 | | Disqus
Gold and silver are higher again today with the U.S. dollar and yen in particular under pressure as concerns about the outlook for growth in Japan, the UK, the EU and the U.S. deepens. Gold reached new record nominal highs in sterling yesterday at £949.83/oz on concerns about the UK economy.
The risk of contagion in the Eurozone remains and could see the single European currency project unravel which would negatively impact on the global financial and monetary system.
Cross Currency Rates
Worries about contagion will prove long lasting and this will see sustained investment demand for gold.
Whether the euro as we know it will survive the current crisis remains in doubt. Gold’s finite nature and the fact that is not dependent on the performance of central banks and sovereign governments make it an increasingly attractive alternative to dollars, euros and other currencies.
Diversification away from the dollar and euro and dollar and euro denominated assets is set to continue with Asian currencies, gold and silver likely to be the primary beneficiaries.
Gold in US Dollars – 30 Days (Tick)
Gold has consolidated and gradually risen since the selloff in early May and looks healthy both technically and fundamentally.
This could result in the record nominal high of $1,577.57/oz being challenged sooner rather than later – especially as we are less than 2% away from the recent record high. The psychological level of $1,600/oz is the next target and should be quickly reached once $1,577.57 is breached.
Strong support is now seen between $1,460/oz and $1,500/oz where good physical buying has been consistently seen.
Gold in US Dollars – 180 Days (Daily)
Media coverage of gold and the merits of a diversification into gold remains extremely limited – particularly in the UK and Ireland. Gold remains taboo and is covered rudimentarily and skeptically every few months in many media outlets.
The suggestion that gold is a bubble continues – especially among non gold experts. This has been taking place since gold rose above $850/oz more than three years ago - back in early 2008.
There continues to be a peculiar desire to call the top of the gold market. This is especially the case among analysts who failed to warn regarding the recent stock and property bubbles.
There continues to be an absolute failure to understand gold’s importance as a portfolio diversfier and as a safe haven asset.
The fact that gold has retained value throughout history and will continue to retain value is not appreciated by most.
Whether gold goes up or down this month or this year is not important. What is vitally important is how gold retains its value, especially versus fiat paper currencies over the long term.
NEWS
(Bloomberg) -- Gold May Advance as Greek Debt Crisis, U.S. Data Increases Investor Demand
http://www.bloomberg.com/news/2011-06-07/gold-may-advance-as-greek-debt-crisis-u-s-data-increases-investor-demand.html
(Financial Times) -- Gold rises to highest level in a month
http://www.ft.com/cms/s/0/16313b86-9070-11e0-9227-00144feab49a.html#axzz1OZixB9Cu
(Reuters) -- Gold firms near 1-month high on economic worry
http://af.reuters.com/article/commoditiesNews/idAFL3E7GV01420110607
(Wall Street Journal) -- PRECIOUS METALS: Investor Demand For A Safe Harbor Boosts Gold
http://online.wsj.com/article/BT-CO-20110606-709804.html
COMMENTARY
(Sunday Business Post) -- Beware the Investment Advice of ‘Gurus’ - Gurdgiev and Westlake
http://www.thepost.ie/themarket/beware-the-investment-advice-of-gurus-56659.html
(Forbes – Lawrence Hunter) -- Mundell’s Dollar/Euro Fix Doesn’t Fix Our Currency Mess
http://blogs.forbes.com/lawrencehunter/2011/06/05/mundells-dollareuro-fix-doesnt-fix-our-currency-mess/
(ZeroHedge) -- Things That Make You Go Hmmm - "Is It Safe?"
http://www.zerohedge.com/article/things-make-you-go-hmmm-it-safe
(Goldseek) -- Gold as Collateral Major Step for Gold Market
http://news.goldseek.com/GoldForecaster/1307149200.php
(ZeroHedge) -- Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Weeks
http://www.zerohedge.com/article/comex-physical-silver-drops-fresh-all-time-low-288-million-ounces-3-drop-overnight-30-drop-s
GoldCore Limited
Ireland:
14 Fitzwilliam Square
Dublin 2
United Kingdom:
No. 1 Cornhill
EC3V 3ND
UK
IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160
E mark.obyrne@goldcore.com
W www.goldcore.com
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. GoldCore Limited, trading as GoldCore is regulated by the Central Bank of Ireland. The provision of precious metal product or service does not require licensing, authorisation, or registration with the Irish Central Bank and, as a result, it is not covered by the Irish Central Bank's requirements designed to protect consumers or by a statutory compensation scheme.
GoldCore is committed to complying with the requirements of the Data Protection Act. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies.The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager - GoldCore, 14 Fitzwilliam Square, Dublin 2, Ireland marking the envelope ‘data protection’.
-- Posted Tuesday, 7 June 2011 | Digg This Article
| Source: GoldSeek.com
