Gold prices saw a slight drop on Thursday as investors await U.S. jobs data. Gold last reported a.m. is $1262.90 down $2.00 and silver is $17.19 down 23 cents.
While prices for most other commodities are sinking gold and silver are seeing strong performance due primarily to global concerns. Gold is performing better than four of the seven top currencies and doing well against the U.S. dollar and the Yen.
Since November of 2014 gold has risen by 13 percent against the U.S. dollar and 30 percent against the Euro. The rise against weaker emerging market currencies is even stronger. Investors are running to gold as tensions in the EU and Middle east escalate. Central banks are adding fuel to the fire by cutting rates to such low levels that investors have no real return. Currency wars are worsening and it appears global investors are not willing to chance total loss to paper markets and fiat currencies.
Actions by the Swiss National Bank to abandon its cap on the franc pushed gold over $1280 per ounce hitting its biggest weekly gain in more than 17 months. The move sent the franc 30 percent higher against the Euro and rattled European stock markets already fragile from worsening economies.
The European Central Bank decision to purchase 60 billion euros of government debt and other assets every month until September 2016 served as the second catalyst forcing investors to take cover in gold. These two decisions alone pushed gold to a five month high and placed even greater demand on silver that was already seeing record sales. Silver remains in critically short supply as of the writing of this article.
Over 12 trillion dollars has been created since the global financial crisis by central banks to stave off the inevitable. When all else fails, keep printing money and then go to war before your currency collapses. We have the pleasure of seeing first hand the greatest wealth transfer in modern history right before our eye’s. Unfortunately, most individuals never cared to notice. The financial elitists have indeed become astronomically wealthy during this charade but average citizens have nothing to show for the past 7 years, but loss.
Global central banks purchased a net 462 tonnes of gold in 2014. This number is 13 percent higher than the previous year and the second highest level since the U.S. abandoned the gold standard back in 1971. It’s reported that the dollar has lost up to 95 percent of it’s purchasing power since that date.
Russia accounted for one third of central bank gold purchases last year as tensions increased over President Putin threatening to remove the dollar from Russian global energy trading. The ruble is taking a pounding but Russia understands it never had “real” value anyway. Russia is placing it’s hopes for economic and political gain in gold and silver. Russia purchased 152 tonnes of gold last year an increase of 120 percent compared with 2013.
Slower economic growth and a decrease in China’s jewelry demand allowed India to move into the number one position when it comes to being the biggest purchaser of gold. Chinese gold demand slid to 866 tonnes while the countries scrap gold rose 21 percent to 182 tonnes. Nevertheless, China will continue buying gold in record amounts as it sides with its new best friend Russia as both countries are determined to destroy the U.S. dollar.
Both gold and silver are warning us that all is not well as prices rise a midst rampant corruption at COMEX and the LBMA. If governments have no trust in their own currencies and stock markets, should we?
The fact that investors can buy gold at basement prices and silver below productions costs is almost unbelievable. Record precious metals demand coupled with economic and political chaos and prices are still at ridiculously low levels. Just the opposite should be happening.
We are offering the 1 oz. Silver Canadian Maple at special discounts for investors looking to purchase while supplies last and silver remains available below production costs.
One ounce silver bars are available at lower premiums for those looking for the most silver for your investment. Call us at 1-800-577-3195 for updated pricing.