Overnight Asia lifted the gold price to $1,432. After London opened and the Fix was set at $1,432.50 and €1,008.16 gold traded higher $1,437.35 and €1,011.26 where it held through London’s morning. The euro held at $1.4212 where it had been in Asia before London’s opening.
GFMS produced the report for the Silver Institute published last week. We have used this as a basis for this article on silver supply and demand in the last three years. Our objective in this piece is to have recent history confirm what we expect of the future for silver.
The gold price fell in Asia after the 125-page report on world markets was issued by the People’s Bank of China, the Chinese central bank. In it, it said, "We need to note that gold prices have reached historical highs, and its downward risks should not be overlooked."
To put it in a nutshell stagflation is where economies do not grow or fall, while money cheapens persistently, ensuring no protection against wealth attrition.
Where next? In such an environment there is little prospect of raising confidence, lowering uncertainty and stabilizing the developed world’s economies. In such an environment which fully reasoning investor is going to exit precious metals?
After the earthquake and Tsunami wreaked horrendous damage in Japan and was blamed for huge drops in equity and other markets, extreme volatility was the best description of most global markets for this last week.
