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The benefits of an eventual single currency are numerous. It will increase market transparency by making prices more easily comparable. Cross border transactions will also become more attractive as market operators will no longer be exposed to exchange rate risks, and costs associated with currency conversion will be eliminated. Moreover, single currency will go a long way in promoting political union in Asia. But it will be a long drawn out process. Europe has worked towards political and economic integration for over 50 years before the birth of a single European currency in 2001.

To which we might add that all of that is fine, except for the small number of vocal critics of the Euro who have not minced words in calling the single currency an exeperiment and one that could fail for a number of reasons, within less than twenty years of its debut. Hmmm...for the moment, the euro appears to be doing not too badly, eh?

Look for volatility but thus far the scale is on the small side for today. Let's see what the economic data begets.

Jon Nadler is a Senior Analyst with Kitco Bullion Dealers Montreal