Precious Metals Continue to Hang Tough
Source: mining.com, Mike Daly (4/27/10)
"Gold and silver are being supported by enormous physical [purchasing]"
The Greece debt situation has put a huge strain on the euro states, as well as the global economy; and considering there are several other euro states in need of debt relief, this scenario could be a daily market indicator for quite some time.
The problem is the constant contradictions being released from the EU. This has chased investors out of the euro drama and into "safer havens—primarily precious metals." Goldman Sachs will get its chance to defend itself in a Senate hearing next week.
Last Friday, the SEC filed charges against banker Fabrice Tourre and Goldman Sachs, accusing them of fraudulent mortgage procedures. The following Monday we learned the SEC voted 3-to-2 to file charges against the industry giant. . .(it was not unanimous).
Many investors saw the split vote as vote of confidence for the already embroiled Wall Street constitutes. This has been a rough patch for Wall Street. The Central Bank of India raised its key interest rates 1/4 of a point while also raising cash reserves from 5.75% to 6.00%. This is due to the country's strong economic growth and rising inflation. Expectations are the Peoples Bank of China will also raise their rates in order to slow down their GDP and curb rising inflation.
The above paragraphs are USD-friendly and, considering the severity of all of them, it is totally amazing the precious metals are still trading above $1,100. Gold and silver are being supported by enormous purchasing of physical gold and silver.