Monday, 30 May 2011
Posted by
Admin Hijrah Dinar
The big news coming from the World Gold Council stating, not only has China become the largest consumer of gold , and that it gives the underlying support to the metal, but more immediately, they cited the renewed concerns happening in Europe.Just as Greece’s debt problems escalate, another humdinger hit the waves on the Eurozone, particularly over the economic problems in Spain—an economy that is bigger than the economies of Portugal, Ireland and Greece combined. The housing market had no remorse for the Spanish when it crashed it hit hard, says the team of researchers at Regal Assets. Those three countries have asked for bailouts in the face of rising debt imbalances that marked gold’s first settlement above $1,500 since May 12, adding $16.50, or 1.1%, to $1,508.90 an ounce on the Comex division of the New York Mercantile Exchange–the highest for a most-active gold contract since May 10.
Even as the Spaniards go to the polls this weekend, with the ruling Socialist Party expected to suffer some setbacks, it could spark renewed buying in gold as a safe-haven market, though rallies could be held in check by a stronger dollar,” said Darin Newsom, Telvent DTN senior analyst.
But, Sprott reiterated his stance on gold and silver, spite of the recent weakness in precious metals, saying, that it provides investors with protection against problems in the banking system and further debasement of the U.S. dollar and other fiat currencies. While elaborating on issues in various countries’ banking systems, he said: “If you’re in Ireland today, you don’t have any money in banks, particularly if you’re non-Irish. If you’re in Greece you’re taking your money out. In Portugal you probably have concerns. If you have a fear of the banking system, you go to things like gold .”
As a note: Sprott’s headquarters in Toronto, Canada is about the celebrate Monday’s Victoria Day, and on May 30 the U.S. celebrates Memorial Day, which may mean, that “gold would likely consolidate in a range,” says Sterling Smith, commodity trading adviser and market analyst with Country Hedging, adding, that “gold behaves erratically around holidays.”
Source: http://goldcoinblogger.com/gold-as-the-global-currency/#more-3076
Even as the Spaniards go to the polls this weekend, with the ruling Socialist Party expected to suffer some setbacks, it could spark renewed buying in gold as a safe-haven market, though rallies could be held in check by a stronger dollar,” said Darin Newsom, Telvent DTN senior analyst.
But, Sprott reiterated his stance on gold and silver, spite of the recent weakness in precious metals, saying, that it provides investors with protection against problems in the banking system and further debasement of the U.S. dollar and other fiat currencies. While elaborating on issues in various countries’ banking systems, he said: “If you’re in Ireland today, you don’t have any money in banks, particularly if you’re non-Irish. If you’re in Greece you’re taking your money out. In Portugal you probably have concerns. If you have a fear of the banking system, you go to things like gold .”
As a note: Sprott’s headquarters in Toronto, Canada is about the celebrate Monday’s Victoria Day, and on May 30 the U.S. celebrates Memorial Day, which may mean, that “gold would likely consolidate in a range,” says Sterling Smith, commodity trading adviser and market analyst with Country Hedging, adding, that “gold behaves erratically around holidays.”
Source: http://goldcoinblogger.com/gold-as-the-global-currency/#more-3076
Category:
Gold Saving / Investment
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