Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Gold kept galloping to $1,496 before pulling back to $1,490 then recovering at London’s opening to $1,494.45. The dollar barely moved and held at $1.4241, which in the light of the bad news for both the dollar and the euro was really a statement that they were both falling at the same speed. The gold price was telling us that they were falling rapidly as it roared forward to €1,049.19. It was only €1,010 the other day! In London gold Fixed at $1,495.00.
In silver, prices were not running as fast as they were in gold and stood at $43.22 but sat more comfortably at this level this time round. The silver Fixing was at $42.79. In the euro we saw a Fix at €29.94.
After the Fix, but ahead of New York’s opening gold held at $1,495, but the dollar strengthened back to $1.4301. This left gold in the euro price of gold at €1,045.38. Meanwhile, Silver also held its high ground at $43.00.
Gold – Very Short-term
The gold price is looking at $1,500 for the first time and could be volatile today in New York today.
Silver – Very Short-term
Silver is still in new territory but consolidating, but we expect prices to continue to show a positive bias, in New York today.
Silver & Gold Price Drivers
Gold and silver continue to amaze and puzzle outside observers. It is ignoring the usual market patterns because it reflects different investment cultures in the West and the East, so the developed world’s rules are being swamped by a different type of demand behavior from the one it is used to.
Gold is looking at $1,500 for the first time. In the euro it stands at €1,049 after two major events. The first was the lurch down of confidence in Europe’s handling to Greece’s debt distress and the second was the Standard & Poor’s cut in its ratings outlook for the U.S. to negative from stable.
You may well ask, why did the market choose to react when the problems on both sides of the Atlantic have been there for so long? The answer is that someone responsible has alerted the whole world to the danger. The fear that others may react pressed some investors to act. It can’t be ignored any more! The reason for the downgrade and for the ongoing problems of the Eurozone is simply that politicians with conflicts of interest are charged with resolving the problems. The conflict comes because they are worried about the votes of their constituents, the national interests of their nation and how that will go down if they resolve the crises at their voter’s expense.
In the U.S. you have the same problems. Now the downgrade is calling politicians to account over debt. How will they handle their priorities? It’s not so simple as to resolve their debt problems, voter wishes come first. But now politicians can move this issue from problem solving [which loses votes] to crisis management [which wins votes], so something may at last be done about it.
Gold and silver will continue to benefit as long as the situation persists. We will issue an article on how the U.S. and Eurozone debt problems will continue to benefit the precious metals for a long time to come, in the next issue of the Gold Forecaster and Silver Forecaster.
[The Gold Forecaster and Silver Forecaster are a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
