Gold Price Holding Ground Above $1600
Gold made a sharp move above $1600 today and caused very mixed reactions as you can see from our selection of articles , tweets and comments from a number of reliable sources
Categories: Gold News Tags: gold price
Global Gold Mining Trends
It wasn’t long ago that global gold-mine production had fallen to alarming lows. In 2008 this bellwether supply source was on the heels of a 5-year 13% decline, offering the markets its lowest output in 12 years. And this precipitous plunge had left folks scratching their heads considering gold demand was on the rise and its price was entrenched in a powerful secular bull.
Thankfully this 2008 low would mark a major turning point in global mine production. And a powerful new uptrend formed that has seen volume rocket to an all-time high in just three years. According to estimates by the US Geological Survey, in 2011 mine production was up nearly 20% from 2008, to record volume of 2700 metric tons.
Categories: Weekly Essays Tags: gold mining, gold price, gold stocks, zeal weekly essays
A Contrarian View – The Euro Is Due to Resurrect
The fortunes of Europe’s beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness. This has proven seriously vexing for traders trying to focus on fundamentals. But the extreme euro pessimism worrying everyone is actually very bullish. This loathed, oversold currency is due to surge again.
Today of course the great fear plaguing the euro is centered around Greece. This profligate, unrepentant debtor nation seems hellbent on not honoring its commitments to the rest of Europe which could force its exit from the eurozone. And though Greece’s economy is immaterial relative to greater Europe’s, traders are worried Greece forsaking the euro will trigger other troubled debtor countries to follow suit.
And if Greece proves the initial domino that ultimately leads to the eurozone fracturing, what is the fate of the euro itself? This compelling line of reasoning has catapulted the short-euro trade to become the most-crowded macro bet on the planet. There is a universal expectation the euro is doomed to spiral lower, with only the magnitude of losses in doubt. This euro-to-zero sentiment is immensely popular.
Categories: Weekly Essays Tags: Euro, European Union, eurozone, Government, Greece, United States, US Dollar Index