Asia again lifted the gold price to over $1,513 and also took the euro to €1: $1.45 before London opened. The euro pulled back slightly to €1: $1.4375 during London’s morning. At the morning fix in London it fixed at $1,508.00 and in the euro, lower at €1,041.08.

Over the last year, perhaps the greatest concern of the developed world markets has been the Eurozone debt crisis and its effect on the euro. It has brought into sharp focus the seriousness of a nation’s debt situation. In the last decade, we have blithely accepted that a nation can issue debt and be safe from default.

The Indian gold market has reaffirmed its dominance in 2010 and will continue in 2011. Expect China to overtake the sub-continent in demand for gold. The love of gold in India goes far beyond a simple source of future profits. It is an expression of wealth, financial security and family stability. It also carries religious overtones.

The gold price closed in New York at the $1,552 but fell in Asia back to $1,547, before fixing at $1,546.00 and in the euro at €1,074.36. It then picked up to $1,550 while the dollar hovered around $1.4305 to $1.4350 and in the euro gold recovered to €1,080.18. Overall the markets were unmoved by the vote of confidence in the Greek government.

Asia ended its day in the region of $1,541.80 Greek Parliament’s vote of confidence today. In the euro it was sitting at €1,075.85 ahead of London’s opening. The euro is sitting at Friday’s levels at €1: $1,4331 before London opened. At the fix in London, gold in the dollar was $1,543.00 and in the euro at €1,077.21.

In this piece we are looking at some critical fundamental features of precious metals that are rarely considered or accepted in the developed world markets. Expert investors like Warren Buffet look at inactive, buried gold with amazement, because he is focused on companies that produce things and earn money. And most of us wish we had his skill and money behind us.

Last week the U.N. warned of a possible collapse of the US dollar, if its value against other currencies continues to decline. The U.N. mid-year review of the world economy did not get extensive coverage. Their economic division said that a crisis of confidence in the dollar, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.

If gold were generally accepted as collateral in global monetary dealings, would we see it used as such? Strangely enough, no! In certain transactions, however, where no other collateral –whether currencies, government bonds and the like— is used, gold may be used, as a last resort.

What of the other leading investment lights who are in gold or who have mentioned it in the last few weeks. Investor Paulson is holding onto his massive holding of shares in the SPDR Gold Trust and has added to stakes in mining companies including Johannesburg-based AngloGold Ashanti Ltd. His fund bought 97,540 American depositary receipts in South Africa’s biggest gold producer last quarter, as well as 2 million ADRs in Gold Fields Ltd., its second-largest producer.

We all have a tendency to listen to statistics and formulae and believe that they drive the monetary system. This starts on a false basis because these numbers are driven by more fundamental realities. They should be the result of measured realities, but they can be structured in a way that ignores some of the basics.

We have seen new surprising and strong demand from global central banks in the last week. This demand occurred over the last two months and had to compete with other strong demand from all sides of the gold market.

May Day in Europe is a holiday as was Friday, so the current market is thin and volatile not truly reflecting the gold and silver markets. The moves in the gold price are even attributed to the death of Osama bin Laden, although there are few men of investment prowess that would buy or sell gold and silver on that news.