The Gold Economy

Thursday morning trading in London saw gold rising to $1512 an ounce, bringing it to a weekly gain of 0.7 percent in the week so far, however by lunch time it fell back again, as did commodities and stocks held flat as the second austerity vote by Greece was due to take place on midday Thursday.

The Greek parliament on Wednesday passed the first out of two austerity votes with 155 to 138. Thursday’s second vote concerns how to implement the approved cuts and privatizations.

At the same time, gold prices in euro rose to €33,596 per kilogram (€1045 per ounce). They… Continue reading

Gold investors are optimistic that Wednesday’s vote will see Greece’s parliament approve an austerity plan that is thought to support sentiment in bullion and other commodities.

As a result, gold increased on Wednesday, supported also by light physical buying in Asia – although some analysts said the volume was too limited to push gold out of its trading range.

Greece is still in the focus, with its parliament due to vote on the austerity package that international lenders have demanded as part of a massive bailout.

On Tuesday, the 19-commodity Reuters-Jefferies CRB index went up 1.7 percent… Continue reading

Despite of the mixed signals being communicated to the gold market, gold was fixed at a new high of $1,522.00 at the end of Wednesday trading in London.

Gold struggled to move much above $1,500 after Wednesday’s high, but some experts, including Martin Murenbeeld, chief economist at Dundee Wealth Economics, believe that gold’s bearish factors are unlikely to hold in the long term.

Murenbeeld believes that gold’s upwards trend is likely to continue over the long term, because, as he puts it – the arguments for gold are simply more compelling that those against it – but he… Continue reading

I must confess I am a gold bug both philosophically and in terms of investing. We are entering a golden age for Gold as the bull market is destined to reach amazing heights and real and honest money reemerges as legal tender against fiat currencies that will soon be at the mercy of a sovereign debt crisis. All this being said, I take issue with some headlines listed here in friend Gary’s blog and some gold bug talking points. I’m listing some of these headlines and talking points and here then my response.

System Wide Meltdown as… Continue reading