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Gold
Gold
closed above $1400/oz yesterday and has risen again today in most currencies
and reached new record nominal highs in sterling (877.30/oz) and is targeting
record nominal highs in euros . Competitive currency devaluations and
currency debasement is seeing all fiat currencies fall in value against gold.
Gold traded in Canadian dollars rose as much as 0.5 percent to C$1,422.169 an
ounce, the highest price since 1971 and in India gold rose to an all-time
high of 20,525 rupees. Gold imports by India, still the world's biggest
consumer, increased 25 percent to 20 metric tons in the week to yesterday due
to a surge in demand during the Diwali festival.
Gold
is currently trading at $1,418.30/oz, €1,019.63/oz, £878.20/oz.
The
total indebtedness of the UK, both public and private sectors will rise to
GBP 10 trillion by 2015, and will remain equivalent to more than five times
annual economic output, according to a report published by PwC. This
could lead to slow growth for decades and possibly stagflation. If interest
rates were to rise, this debt would become extremely onerous and would likely
see sterling come under pressure as happened in the 1970s.
Along
with precious metals, German 10-year bunds have climbed for the second day as
concerns that eurozone peripheral nations will struggle to reduce their
budget deficits and remain solvent, led to increased demand for the safest
assets. Concerns of contagion in financial markets has increased due to the
scale of borrowing required by western governments in the coming years.
The
cost of insuring sovereign debt against default has risen according to prices
for credit-default swaps, particularly in Spain. The Markit iTraxx SovX
Western Europe Index of swaps on 15 governments rose 2.5 basis points to an
all-time high of 179.5. Spain's default risk climbed 10.5 basis points to a
record 275.5. Swaps on Portugal increased 3 basis points to 470, Ireland rose
3 basis points to 602, Greece was 4.5 higher at 873 and Italy was up 5 at
204.
Silver
Spot
silver climbed to the highest price since March 1980, rising as much as 0.6
percent to over $28 an ounce.
Silver
is currently trading at $28.34/oz, €20.38/oz and £17.54/oz.
Platinum
Group Metals
Platinum
is trading at $1,783.50/oz, palladium is at $728/oz and rhodium is at
$2,175/oz.
Mark O’Byrne
Goldcore
Mark
O'Byrne is the Managing Director of Goldcore, Ireland's Asset Diversification
and Wealth Preservation Specialist. He is regularly quoted and writes in the
financial media and was awarded Ireland’s prestigious Money Mate and
Investor Magazine Financial Analyst of 2006.
You can contact him by calling : the GoldCore
Bullion Services Team on
(Irl)+353 1 632
5010
(UK)+44 203 086 9200
(US) +1 (302)635 1160
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