So far this week the precious metals have shown extreme resiliency as economic news globally has tested the patience of the most disciplined traders. The recent global economic data has analysts divide and therefore the markets are seeking an indicator and a direction.
Much of the news this week has been the European Unions dilemma in regards to Greece. It has become apparent that Greece’s debt crisis was much worse than originally thought. The Greek budget deficit has affected everything from European Stock Markets, Central banks and certainly devaluing the Euro versus the Dollar. Despite a weaker Euro I believe that global Investors are tired of the fiat currencies Non stop woes and are flocking to Gold and Silver as a flight to a “safer haven”. There is certainly proof there has been a jump in physical demand lately.
The U.S Economy took another punch to the stomach as the U.S Labor Department announced that initial
Jobless Claims rose by 31,000….(473,000)
This should be priority one!!!!!
Also the IMF announced it would be selling its remaining 191.3 tons of Gold. This pressured the Gold and Silver markets early. I believe investors thought the selling of this massive amount would over whelm the existing demand. But as we have seen over and over the Asian sector has bought every price dip and considers it to be bargain hunting….
We also know the Chinese look to boost their gold Reserves to 10,000 metric tons over the next decade. The remaining IMF Gold would be a good start to that achievement…I believe if a Central Bank purchases any or all of the IMF Gold it will signal a Bull RUN similar to rally after the central Bank of India purchased 200metric tons. 4 months ago.(rallied almost $180.00)…..
The resiliency of the precious metals is real…
Feel free to call…Lets talk Gold !!!
Mike Daly / Gold Specialist