Precious metals rose sharply again today with gold ending up by more than $15 and closing at $1,411.20 oz. Silver exploded by a full $1.00 (3.74%) ending at $27.38 oz. Fears of another round of looming sovereign debt crisis in Europe has been the prime mover today along with comments by the chief of the World Bank supporting gold as a possible measure of currency stability.
Stocks ended the day generally lower and the US Dollar Index rose on the already referenced concerns about European debt. The yield on the 10 yr Treasury Bond fell by 2 basis points. The 30 yr Treasury remained unchanged.
The Terrible, Troubling Test
23 hours ago
3 comments:
All of those folks buying gold as a hedge against run-away inflation are going to feel rather foolish when run-away inflation never emerges.
The US central bank has stated unequivocally that it is going to increase the supply of paper relative to the supply of gold, so gold is going up in terms of dollars. What gold's "fundamental" value might be is unknowable. But it seems a safer bet than Treasuries. After all, if I want to lose money on my money, I can just put it in the bank.
The Fed is increasing the supply of paper that may never become money, at least not domestically. The emerging market countries are getting ready for a typhoon, and they're mega-pissed.
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