Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
In the same category

Who is going to buy all that debt?

IMG Auteur
 
Published : January 05th, 2012
412 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

 

 

 

 

The price of gold started the year on a positive note, rebounding from support at $1,550 per troy ounce back towards $1,600 and extending its decade long bull market. The future looks just as bright for the yellow metal, as real interest rates remain negative around the world and, as Bloomberg reports the world’s largest governments are facing the daunting task of refinancing over 7 trillion dollars in 2012. As the markets’ appetite for sovereign bonds dries up and the perception of fixed income as “riskless assets” goes the way of the dodo, the easiest way out for the debtors will be to print and inflate.

Improving macroeconomic numbers from the US are being seen by some economists as the first signs of accelerating inflation, especially given the rise in key energy and agricultural commodities, while others are playing the “green shoots” song again. Meanwhile the Chinese slowdown, exemplified by the Hang Seng Index’s 9 month and 25% drop, has sparked increasing concern over whether the Asian giant will see a soft or hard landing, and how that will affect the world economy. Both Japan and China will be less enthusiastic buyers of US sovereign debt, unless of course it is done with newly printed money and for currency manipulation purposes.

The demoralizing end of year drop in the price of gold spooked many gold bugs, however, “If you can keep your head when all about you, are losing theirs…” and take a few minutes to look at the fundamentals, you will see the wisdom of holding onto your gold, and perhaps even deciding to buy some silver, which at under $30 per troy ounce is looking like a real bargain. As long as the long term bullish trend is undisturbed and the fundamentals remain in place, the best plan is quiet, steady and methodical accumulation. Emotions are always the enemy of prudent investment and saving.

Spain’s announcement today that the budget deficit will overshoot 8% (when the official target was under 5% just a few months ago), casts a long shadow over the euro. We are well past the point where the euro-periphery trembled but could hope to be bailed out by the euro-core.

In the US the primaries, starting with the Iowa caucuses today, will see foreign policy compete with the fiscal crisis for the spotlight. Whatever the outcome, precious metals will remain the only store of value that do not depend on someone else’s promise and that cannot default.

 

 

Thanks to Goldmoney from www.goldmoney.com
Companies Mentionned : Metals X |
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
First Report since April, 2014
05 FebAndy_K
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.47%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 50.90-0.59%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 24.85-6.44%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.94-3.64%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 50.90-0.59%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 50.90-0.59%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 24.85-6.44%Trend Power :
Corporate news
Comments closed