Gold climbs as housing starts falter
Tuesday, July 20, 2010
Stocks slumped on Tuesday.
- By Superior Gold Group
The price of gold rose on Tuesday morning as housing construction plunged to its lowest level since October. Figures from the Department of Commerce showed that the seasonally adjusted annual rate of new building fell 5 percent in June, to 549,000.
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NPR asks: ‘Can the European welfare state survive?’
Wednesday, July 14, 2010
The European parliament building.
- By Superior Gold Group
Morning Edition, airing on National Public Radio, asks a question that many Europeans must be asking themselves - can their generous welfare states, with the promise of gold-plated healthcare, childcare and pensions for all, survive increasing levels of debt and slowing growth?
From Ireland to Italy, Europeans became accustomed to a “cradle-to-the-grave” state offering benefits that most Americans could only dream of. In return for high taxes and inflexibility in the labor markets, citizens of European nations got to retire early, go to the doctor for free and take years off for maternity leave.
Now, however, the bill is coming due. As Nicolas Doze, a French economics commentator, told NPR, “our social system in France alone has accumulated more than 100 billion euros in debt, and it just isn’t viable anymore. Today it survives thanks to one thing: France’s AAA credit rating and our ability to keep borrowing to pay for the social programs.”
With legislation in the U.S. pushing the country closer to the European model, sharper increases in debt seem inevitable. Once new entitlements are put in place, it becomes harder to scale them back.
NPR reports on the hundreds of thousands who protested in France over President Nicolas Sarkozy’s proposal to raise the retirement age by just two years - from 60 to 62. Yet regardless of how much people protest, there are budget shortfalls, which will have to be paid.
Here, state governments are learning the hard way about excessive debt. Illinois recently had to sell $900 million in taxable municipal bonds, even as it stops paying workers, social services and hospitals.
One thing that indebted governments won’t do - whether local, state or national - is stop paying the interest on their bonds. It might seem callous to cut off benefits and payments to public institutions, but if bondholders decide that the debt is too risky, the credit markets could seize up entirely.
NPR asks: ‘Can the European welfare state survive?’
Wednesday, July 14, 2010
The European parliament building.
- By Superior Gold Group
An episode of Morning Edition, airing on National Public Radio, asks a question that many Europeans must be asking themselves - can their generous welfare states, with the promise of gold-plated healthcare, childcare and pensions for all, survive increasing levels of debt and slowing growth?
| Wednesday, June 30, 2010 |
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| - By Bruce Sands |
| Gold prices resisted the general rout in financial markets today, trending essentially flat while stocks and risky bonds were hammered by bad economic projections. The spot price of gold was $1,240.40 per troy ounce, up $1.80 from the open.
The Dow Jones Industrial Average, on the other hand, fell 268 points, sinking well below the 10,000 point line to 9,870. The S&P 500 lost 33.33 points to 1,041.24, while the Nasdaq had the worst losses, sinking almost 4 percent to land at 2,135.18. Even silver got dragged down in the rout, falling by 1.03 percent to trade at $18.52 per ounce. Apparently, on a day of general despondency, silver’s role as an industrial commodity outweighed its attraction as a store of value. That left gold one of the few winners of the day, buoyed by traders looking for a safe haven. Once again, investors see and respond to the ability of gold to protect value and deliver positive returns, whether in paper share form or in physical coins and bars. News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today! |
| Wednesday, June 9, 2010 |
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| - By Superior Gold Group |
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Silver has been trading around $18 per ounce in recent days, which could suggest the metal has additional upward potential with investors remaining rattled about the euro zone’s debt crisis. Silver has also been in demand this year because it is used in a variety of electronic and consumer products.
In contrast to silver, the price of gold has hit a record $1,250 per ounce in this week’s trading, illustrating the appetite that investors have for precious metals in light of an uncertain world economic climate. The latest warning sign for world markets came in the form of a Fitch Ratings report on Tuesday, which cited the “formidable” fiscal challenge that the United Kingdom will face as it tries to maintain its credit rating and bring down its budget deficit. Investors are also concerned that Greece or other countries, such as Spain or Portugal, could end up defaulting on their debts, causing additional financial turmoil. Demand for precious metals is being fueled by a variety of different factors at this time. As a result, consulting with a silver and gold dealer may be a good idea. |
- By John March Long-term investors in dealer gold had their foresight rewarded yet again this week as the precious metal soared to another record high due to concern about the European debt crisis.
A Tuesday Reuters report noted that gold’s new record price now stands at above $1,250 per ounce, while gold futures for August delivery stood at another record of $1,254.50. The wire service also noted that the gold prices have risen about 12 percent during the current quarter alone.
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