Precious metals prices suffered a broad based decline on Friday as the price to invest in Gold dipped below $1,500.00 an ounce, and the price to invest in Silver slid below $26.00 an ounce, with several other commodities following suit, including Brent crude oil which hit an eight-month low. The dollar gained 0.5 percent against the euro while the equity markets headed for what many are calling a bubble, fueled by cheap money printed by the Fed.
Some believe the sell-off was triggered when European Central Bank (ECB) President Draghi, speaking at a gathering of euro-area finance ministers on Friday, said the profits realized from any sale of Gold reserves by the Central Bank of Cyprus (CBoC) must be used to cover any losses incurred from the emergency loans made to Cypriot commercial banks. He was speaking of a European Commission (EC) debt assessment done on April 9th that committed Cyprus to selling $523 million of its “excess” Gold reserves.
A spokesperson for the CBoC, however, denied that the Gold sale had ever been, “raised, discussed or debated,” with the bank’s board of directors, who would make the final determination. There have been no other reports released on Friday that could spark such a dramatic reaction. There is, however, some concern among investors that if Cyprus does decide to sell its reserves to help finance its European Union (EU) rescue, other countries like Spain, Italy, and Portugal could follow.
The bottom line is, when the fundamentals remain unchanged, like the Fed's aggressive easing, fresh money being printed in Japan and Europe, U.S. unemployment levels that are frozen above 7 percent, and mining costs that are rising sharply. Until these factors change, pullbacks in Gold must be viewed as buying opportunities.
Meanwhile, North Korea targeted Japan with fresh threats of a nuclear strike while U.S. Secretary of State, John Kerry, urged China to wade in on the debate and cautioned the North Koreans on their virulent rhetoric, before declaring that North Korea would never be accepted as a nuclear power.
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TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
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No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
