Tag Archives: european union

A Greek decision to leave the eurozone could trigger a chain reaction that would send financial markets into turmoil even worse than the collapse of Lehman Brothers in 2008, a leading international economist has warned. Get all the details here.

As the European Central Bank continues its loose monetary policies, the Swiss are getting nervous. For a nation with such a distinguished and proud history in banking, privacy and respect for gold, it seems like they can no longer idly watch the ECB print money. Now, what they’re considering doing may not only put them back on the path towards fiscal responsibility, but it could have huge implications for the entire gold market. Find out here what they have up their sleeve.

Sales of physical gold are expected to pick up in the coming weeks as China, the world’s second largest consumer of gold, prepares for celebrations in February when it will ring in its new year and mark the arrival of the Black Water Snake during its Spring Festival. Gold’s movement last week certainly looked like a serpent swimming in a pond, and closed the week up %0.6 at $1,657.50. Silver picked up slack and closed a full 4.6% higher, docking at $30.67. Chatter has begun about a possible hard landing for China’s economy. Rough rumors or real talk? As the U.S. fiscal follies come back into view with debate over the debt ceiling, prepare for some jitters in the market. From the outside, the Eurozone seems to be stable (if you consider a slowed slide into collapse as stable), but citizens in each country continue to launch local, alternative currencies. The unrest in the Central Republic of Africa has been halted by a cease fire agreement, but the citizens of the country still clamor for greater redistribution of the wealth generated by the national mining industry. This could be bad news for French mining concerns. Further pressure in Africa: if China does have a hard landing, Angola, Congo, Ghana, Zambia could also see major disruption to their economies. Like the predictions for the Year of the Black Snake, gold will have its ups and downs. Keep your eyes on China these next few weeks.

December 2012 was a touch-and-go month for gold, as it ended the month about $50 lower than it started. Some may be led to think that the value of the metal had tanked, at least judging from recent sensationalist headlines calling it a risk asset rather than the traditional hedge against inflation that it has served for centuries. A number of pundits have gone so far as to show the numbers behind why gold prices should be marked to oil, not the dollar. Others have begun to realize that gold has not tanked because more than Americans buy and trade the metal. Still others claim that like fiat money, gold’s value is a group hallucination.

But no one can deny one simple fact: Since 2001 – and including in 2012 – the price of gold has climbed each year over the previous.

Despite a fourth week beneath $1700, physical gold continues to inspire confidence, remaining a safe haven during this rather frantic close of the year. Gold closed up Friday at $1657.50 while silver closed up at $30.15. With the country now coming ever so close to going over the fiscal cliff, many analysts believe that the U.S. will end up doing just that. Meanwhile, forecasters are calling for the European Union to remain intact, but with significant shocks for 2013. Renewed unrest in the Congo throws Chinese mining interests in the region into flux. Ongoing tensions in Sudan, Libya, Egypt, Israel, Palestine and Syria complicates the future of oil, rare earth and precious metal prices creating a fiscal time bomb in the region. In Asia, Japan’s growth has come to an almost complete halt, but South Korea is seeing surpluses. The Chinese business sector is chomping at the bit for a stabilized stock market, looking to initiate a backlog of IPOs. Brazil’s economy is on fire, but they are importing gold. Bolivia has made good on nationalizing a few mines and Peru may finally make that move in early 2013. The world continues to spin, and precious metals and rare earths continue to be its axis. Have a prosperous New Year.