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.
Once again this week provided plenty fuel to extend the recent rally in the precious metals. The debt crisis continues to be the engine that is driving the global economy and has investors heading into Gold as a financial flight to safer havens.
The main problem is the conflicting stories coming out of the European Union. We had thought that the European Union leaders had worked out a plan (last month) in conjunction with the (IMF) International Monetary Union to help Greece’s debt which is the largest deficit of all the countries which use the Euro. However, Market News International reported (April 6th ) “Greece is averse to the International monetary
Funds (IMF) involvement in the bail-out”.
Speculation was the bail-out plan for Greece was about to unravel. Greek banks took a hit , with the country’s second largest lender (EFG Eurobank Ergasias SA falling 9% on the STOXX 600. On Thursday European Central Bank President Jean-Claude Trichet announced” Greece is not in danger of defaulting but must pursue its debt-cutting measures rigorously”.
These day to day contradictions are giving investors little confidence in the Euro. Especially since there are several other Euro states with debt crisis’of their own including Portugal, Spain, Ireland, and Italy. It has been reported by Reuters “The Eurosystem’s reserves of gold and gold receivables increased 19.8 billion Euros’. This is proof positive the European Union is lacking confidence in its currency and turning to hard assets.
Friday April 2nd the Labor Department released the addition of 160,000 new jobs for Americans. There were projections of 190,000 but all in all that is great news. However, today’s Jobless claims data showed an increase of 18,000 new applicants for jobless benefits raising the total to 460,000. Federal reserve Chairman Ben Bernanke announced “that joblessness, home foreclosures, and weak lending to small businesses pose challenges to the economy”.
With the wedding season in India in full swing the higher prices have slowed down the insatiable demand at least temporarily. The jewelers of India had been buying every price dip especially around the $1100.00 level. With 1 million weddings projected during the months of April and May demand is there but patience may yield better prices.
One of the most auspicious festivals for the buying of Gold and Silver falls on the 16th of May. Akshaya Tritya is a Hindu Holy Day…. Starting a new activity or buying valuables on this day is considered to bring good luck and success. Many buy gold and silver jewelry on this day and the giving of gifts on this day is considered inexhaustible. As I have often stated 12% of all refined Gold in the world is thought to be in the households of India…
WORLD BANKS REPORT (THIS WEEK)
Bank of Japan left its interest rates unchanged at 0.1%
Bank of England kept its interest rate at 0.5%
The Reserve Bank of Australia RAISED its interest rates to 4.25%
The European Central Bank (Frankfurt) kept their interest rates at 1%
Global economics and demand have fueled this rally….
The rally has blown through what were considered to be very solid resistance levels ($1130.00, $1140.00, and $1150) like a hot knife through butter. However, analysts are split some saying we are over bought others saying were on our way to new highs…..We’ll have to wait and let the market dictate…after all “THE MARKET IS ALWAYS RIGHT”
Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest,com
877-294-4669
312-775-3010
312-563-8029
*there is extreme risk trading futures, options, and forex*
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