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April 29, 2010 / Hal (GT)

Today’s round up in gold and gold related news.

Okay. Today looks to have been a bit of a give and take kind of day for gold where those holding some long positions took some profit but over all the last twenty four hours look to have been pretty much sideways trade wise. So like I said, pretty equal give and take.

Right now the real time desktop widget I use is showing gold’s spot price at $1,167.10. Silver and Platinum are the ones that showed the big gains today. Silver right now is at $18.50 and platinum at $1,736.20.

Onto the links of note. Most importantly check out the charts over at Jim Sinclair’s Mineset which show gold in comparison to various other world currencies. It’s pretty enlightening.

While you are there check out Trader Dan’s look at today’s gold action.

After you’re done there be sure to check out Ed Steer’s Gold and Silver Daily column at Casey Research. I never miss it and you shouldn’t either. There is some good stuff in it today worth your time: Another Day… and Another Slide Down the Every-Steepening Slippery Slope

Further gold related news: Why Gold’s Rally Is About Far More Than Greece

Gold is rallying in all the major currencies at the moment which, as I’ve pointed out before over the past several years, is further evidence that gold’s bull market isn’t just a weak dollar phenomenon.

But the reason it’s rallying now is much more complex than just the PIGS and the euro’s decline. The sovereign debt problem is much bigger than the PIGS. It involves the US as well. Ultimately, the problem is with all these Western sovereign pieces of paper. They aren’t worth the paper they are printed on, any more than Greek debt is “as good as gold.” This is the problem.

Eric King of King World News writes today on his blog: Out Of Currencies And Into Gold

Eric King: This statement from Alex Barrett says it all, “Gold in Euros is at record highs and I think that people not just in Europe but across the world are losing faith in a lot of the fiat currencies and are actually heading towards real assets.” This is exactly the kind of thing you would expect to see in phase II of this secular bull market in gold.

Now, onto some news which I believe in the long run will affect the precious metals markets.

German MPs claim Greece needs €120bn

That’s north of  $150 billion US dollars folks. Don’t bother investing in a printing press.

Greece will need financial assistance amounting to between €100bn-€120bn over the next three years, German parliamentarians claimed on Wednesday after meeting Dominique Strauss-Kahn, managing director of the International Monetary Fund, and Jean-Claude Trichet, president of the European Central Bank.

They said that the €45bn currently proposed as a rescue package of loans from the IMF and other members of the eurozone was only enough for the first year of support.

In related news to that: Roubini Says Rising Sovereign Debt Leads to Defaults.

“The bond vigilantes are walking out on Greece, Spain, Portugal, the U.K. and Iceland,” Roubini, 52, said yesterday during a panel discussion on financial markets at the Milken Institute Global Conference in Beverly Hills, California. “Unfortunately in the U.S., the bond-market vigilantes are not walking out.”

Credit-rating cuts on Greece, Portugal and Spain this week are spurring investors’ concern that the European deficit crisis is spreading and intensifying pressure on policy makers to widen a bailout package. Roubini’s remarks underscore statements by officials such as Dominique Strauss-Kahn, managing director of the IMF, that the global economy still faces risks.

Then there’s this: EMU domino fears as Spain downgraded, Germany drags feet on rescue.

German chancellor Merkel and Mr Strauss-Kahn of the IMF brief reporters in Berlin
German chancellor Merkel and Mr Strauss-Kahn of the IMF brief reporters in Berlin

I had to laugh out loud when it first loaded up. That photo they are showing looks at first blush like German chancellor Merkel and Mr Strauss-Kahn of the IMF are standing before a firing squad.

Ambrose Evans-Pritchard writes:

The heads of the European Central Bank and the International Monetary Fund made a joint pilgrimage to Berlin, pleading with lawmakers in the Bundestag to throw their full weight behind rescue efforts before the chain-reaction spreads to Portugal and the rest of the EMU periphery. Their presence as supplicants in Berlin marks the symbolic moment when Germany appears the undisputed master of Europe.

Dominique Strauss-Kahn, the IMF’s chief, said the stability of the eurozone itself is in danger. “We need to act swiftly and strongly,” he said.

Such a vote of confidence, no?

Finally, have you seen the GM video with their CEO Ed Whitacre claiming they’ve paid back your tax money in full with interest? If not, here’s the video.

Don’t believe it. When I first saw the commercial I knew it was hooey because they’ve not made any money! But don’t take my word for it, go read: GM’s Phony Bailout Payback

Here’s a snippet:

As it turns out, the Obama administration put $13.4 billion of the aid money as “working capital” in an escrow account when the company was in bankruptcy. The company is using this escrow money—government money—to pay back the government loan.

GM claims that the fact that it is even using the escrow money to pay back the loan instead of using it all to shore itself up shows that it is on the road to recovery. That actually would be a positive development—although hardly one worth hyping in ads and columns—if it were not for a further plot twist.

Well, that’s it for today folks.

In the time it’s taken to type this the precious metal spots have remained flat. It’ll be interesting to see what Friday brings for them. But then, I find tracking them fun anyway 😉


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