Global Storm Clouds Put Bid Under Gold and Silver

Wealth floods into gold and silver seeking any port in a brewing currency crisis storm.  Legitimate fears of 1970s style stagflation are bubbling to the top of a cauldron of government interference and overspending soup.  Both intended and unintended consequences of so many contradictory government command and control pigeons are coming home to roost. (Probably one metaphor too many there, sorry.)

Big Money wants gold – physical gold, the money of kings and central banks, and they want it now, hang the cost.  The Little Guy wants silver – the ‘people’s money,’ and they bought it in 2010 like it was … coming back into style.  GFMS says that silver investment rose 40% in 2010.

Is that all?  We bet the increase in silver investment in 2011 is much higher, so far, but Joe Sixpack hasn’t caught on yet.  He’s always on time for the football game, but always late for an investment.

Aren’t you glad you hold gold and silver as a hedge against this tidal wave of change?

New all time high for gold, and closed very close to its high. Silver surges to new 31-year high and very strongly outperforms gold once again.  Silver, powered by late short covering, closes hard upon its high. Gold finally follows through after a breakout from the $1,440s.

Hi-lo spreads widening, with most of the “give” coming from the higher highs.  Gold silver ratio dips into the 35-handle region and closes with a low 36, the lowest since 1983.  Mining shares answer with a good showing. GLD shows positive money flow, but the star of the show this week was IAU (not shown) which added a big 8.08 tonnes to show 133.35 tonnes of gold.

Related posts:

1. Silver tumbles, gold steady on weak global cues
2. Global Governance and New Global Currency About to be Officially Announced at the G20?
3. Global Investment in Gold Bullion
4. Online Campaign Crash JP Morgan, Buy Silver
5. The bulls head the global stampede for gold bullion

Link to this article: : http://www.goldmadesimplenews.com/gold/global-storm-clouds-put-bid-under-gold-and-silver-3463/

Posted by Gene Arensberg on Apr 13 2011. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.