El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Thus far this week has provided plenty of fuel for higher Gold prices as the economic climate in the European Union continues to drive savvy investors out of the traditional “fiat currencies” and in to “safer havens “especially gold as it has a history of performing better than most commodities in times of crisis.
It has been reported that the European states have increased their already vast amounts of gold reserves and the IMF (International Monetary Fund) reported it had sold 18.5 tons of Gold bullion in March. As of this writing the price of Gold has breached the $1200.00 per ounce level as the U.S Dollar continues to ride twelve month high’s ….yes indeed the inverse relationship appears to de-coupled…
This European Union continues to put out contradictory information that is as clear as “mud”. European Central Bank Officials voted Thursday to keep the bank’s key lending rate at 1%. The Euro regions fiscal crisis is threatening the bank’s of Portugal, Spain, Italy, and the United Kingdom.
Moody’s Investors Services was quoted as saying “Overall, moody’s notes that each of these countries banking systems faces different challenges of different magnitudes, but warns that contagion risk could dilute these differences and impose very real, common threats on all of them”…
European Stocks sold-off for the third straight session sending the STAXX Europe 600 to a two month LOW on the continued concern of the Euro regions fiscal crisis will spread….
European Central Bank President Jean-Claude Trichet Is certainly not calming fears as he has resisted taking a solid stance to combat the Greek crisis. Trichet stated “The ECB didn’t discuss buying government debt today and that Spain and Portugal didn’t have the same challenges faced by Greece”…. Then stated “Greece will not default”….. Trichet also stated that loans to Greece were “appropriate” …
The Greek’s took to the streets in protest for the second straight day in reaction to the stringent measures imposed on them in return for the joint financial bail-out package from the IMF and the European Union. This may actually work against the nation of Greece as tourism is a huge part of their economy and the violence will most certainly deter travelers.
The number of Americans filing claims for Jobless benefits fell 7,000 to 444,000 in the week ending May 1st. This is the lowest level in a month….Since the recession began in December 2007 Americans have lost 8.4 million jobs. So we certainly have a long way to go! However, it is a step in the right direction and it does show the economy is heading in the right direction…. Well….let’s wait and see what the Unemployment data due out FRIDAY…7:30 am (CST)……REFLECTS …..
GOLD IS TECHNICALLY OVER-BOUGHT and has been for two weeks….BUT the world’s consumers don’t care!!! They are seeking investments that have a history of retaining value in times of financial stress…Believe me the European union is under stress… Therefore the “flight to safer havens”…..
Let’s Talk Gold ………
Mike Daly / Gold Specialist
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