Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
The US Federal Reserve on Wednesday pledged to hold interest rates at levels near zero until late 2014.
The surprising announcement – indicating the central bank is still worried about the country’s economic growth – sent gold soaring in afternoon trade.
The yellow metal scaled the $1,700 an ounce level for the first time since December 9 last year as investors worried about cheap money flooding markets turn to gold as a storer of wealth.
In late trade gold for delivery in February exchanged hands for $1,711/oz, up almost 3% or more than $45/oz on the day. The gain for the metal in 2012 now stand at 9%. Silver rose more than 4% tracking gold and touching a day high of $32.50/oz.
Reuters reports gold futures trading was “hectic” – contract volume rose above 300,000 lots, double the 30-day average:
“Ben Bernanke is saying if you keep your money under your mattress you lose out as the purchasing power of the U.S. currency is being eroded,” said Axel Merk, portfolio manager of Merk Funds with $750 million in assets under management.
“If you hold gold, the purchasing power is better when all other major currencies are being debased,” Merk said.
Marketwatch reports:
Robert Brusca, chief economist at FAO Economics, said he did not understand the Fed’s decision to push out the low-rate pledge given the improving economic data over the past six weeks.
The Fed seems skeptical and wary of the improving economy, he noted. “In some sense, this undermines the economic performance rather than reinforce it,” according to Brusca.
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Even though big money barons are seeking refuge in gold as they know that the paper money will collapse around the third or four quarter (“If you hold gold, the purchasing power is better when all other major currencies are being debased,” Axel Merk.), the gold prices will soon fall over night and dramatically down to less 10 $/on as soon as we confirm the new gold world reserves. Ask yourselves, why the Feds and Bernanki did this? , look what others are saying: “Robert Brusca, chief economist at FAO Economics, said he did not understand the Fed’s decision to push out the low-rate pledge given the improving economic data over the past six weeks.”. This is the biggest secret kept from the public on purpose as a choc and surprise factor even for the rich and powerful of this world. We will be revealing it as find the funds to get the necessary data on a scale that will allow to confirm the reserves. We cannot raise funds publicly, otherwise we will be denied access under the fallacy of World Security. Dr. X