Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
This week in the precious metals continues to provide evidence that savvy investors are choosing hard assets as an alternative to fiat currencies.
As Greece’s debt crisis negotiations continues to keep the Euro Dollar under siege it has become apparent that the true fiscal crisis is much worse than originally thought. The Greek bonds rallied to a yield of 8.24% which definitely explains why they are having difficulties finding buyers for their debt.
The Greece debt situation has put a huge strain on the Euro states as well as the global economy and considering there are several other Euro states in need of debt relief this scenario could be a daily market indicator for quite some time.
The problem is the constant contradictions being released from the European Union. This has chased investors out of the Euro drama and into “safer havens primarily precious metals. Goldman Sachs will get their chance to defend themselves In front of a Senate hearing next week.
Last Friday the Securities and Exchange Commission filed charges against banker Fabrice Tourre and Goldman Sachs accusing them of fraudulent mortgage procedures. The following Monday we learned the SEC voted 3 to 2 to file charges against the industry giant….(it was not unanimous).
Many investors saw the split vote as vote of confidence for the already embroiled Wall Street constitutes. This has been a rough patch for Wall Street as of late. The Central Bank of India raised their key interest rates ¼ of a point while also raising cash reserves from 5.75% to 6.00%. This is due to their strong economic growth and rising inflation. Expectations are the Peoples Bank of China will also raise their rates in order to slow down their GDP and curb rising inflation.
All of the above paragraphs are U.S Dollar friendly and considering the severity of all of them it is totally amazing that the precious metals are still trading above the $1100.00 level. The Gold and silver are being supported by enormous purchasing of physical Gold and Silver.
We have learned that the European Union has increased its reserves as well as the insatiable demand from India and China. The jewelers of India have been extremely aggressive on every price dip restocking for the wedding season and festival season demand.
The citizens of China are equally insatiable as they have been educated to protect their new found wealth by investing in hard assets such as Gold, Silver, and Diamonds. The Chinese have become the world’s second largest consumer of Diamonds second only to the United States.
Jobless Claims declined 24,000 to 456,000 . Economists were looking for a decrease of 30,000… However this is still great news! Despite the U.S Dollar strength the precious metals are showing unbelievable resiliency especially silver which has been outperforming Gold by using its dual status as both a precious metal and an industrial metal to do so.
Mike Daly / Gold Specialist PFG BEST [email protected] 877-294-4669 312-563-8029 312-775-3014
*THERE IS EXTREME RISK TRADING FUTURES, OPTION, and FOREX*
