Gold prices are rising in early US trading Tuesday on safe haven demand as global markets see another sell-off. The DOW dumped 300 points from yesterdays high.
Gold last reported a.m. is $1129.00 and silver is $14.38.
Germany’s central bank reported last Thursday that after asking for the nations physical gold holdings to be returned to Germany in 2012, they are still waiting on full delivery. That’s correct, a sovereign nation is struggling to get its own gold back from foreign holders. The bank says it is willing to wait 5 more years if need be. Germany will probably never see all of its gold returned and German officials know this. It appears that the Fed out foxed another fox.
Concerns over capital leaving the country are fueling panic selling of equities in China, leading to heavy selling in Asian equities markets.
US, European and Asian markets are all screaming recession and this time the Fed is helpless to do anything. In December, the Fed hiked rates by a pathetic .25% which is the lowest increment possible. ZIRP has not worked to stimulate the US economy but it was never intended to do so. None the less, it may be where the Fed is heading as foreign nations continue dumping US debt.
The difference between 2008 and today is governments and central banks are now insolvent. A global depression is underway and the Fed has no other choice now but to open the flood gates again with its printing presses.
It’s time to insure a portion of our wealth with real physical gold and silver. Both metals are available below production costs defying the law of supply and demand.
Gold Goliath is not your typical gold dealer.