Along with weak revenues from IBM and Goldman Sachs, the news pushed equities markets downwards. Commodities like gold and silver gained, however, as traders searched for a haven. The price of gold rose .25 percent to $1,184.90 per troy ounce.

Fear of a double-dip recession, particularly in the housing market, is growing. An $8,000 tax credit for new buyers, which was extended through this April, helped keep realtors and builders afloat for a while, but now efforts to re-inflate the housing bubble seem to be leaking.

This increases the chance that the government will try to fight back by pumping more capital and liquidity into the economy. Even if there are short-term deflationary pressures, in the longer term, inflation will become a serious concern.

Investors should look at hedging their portfolios with holdings of dealer gold and silver, which will resist inflationary tendencies on the part of central banks.

News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
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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.

All of these circumstances combine to create an environment where currency inflation might seem like the easy way out. Printing money makes it easy to pay the debt, but it leads to high interest rates, creates problems with selling new bonds and devalues the hard-won savings of workers and companies.

Still, if inflation is coming, it makes sense to prepare by compiling a stock of physical gold and other precious metals, which are almost universally regarded by investors as the perfect hedge against inflation.

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.

All of these circumstances combine to create an environment where currency inflation might seem like the easy way out. Printing money makes it easy to pay the debt, but it leads to high interest rates, creates problems with selling new bonds and devalues the hard-won savings of workers and companies.

Still, if inflation is coming, it makes sense to prepare by compiling a stock of physical gold and other precious metals, which are almost universally regarded by investors as the perfect hedge against inflation.

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!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032. ]]> http://superiorgoldgroup.net/2010/07/01/gold-prices-hold-steady-as-dow-plunges-over-250-points/feed/ http://superiorgoldgroup.net/2010/06/15/silver-prices-may-present-buying-opportunity/ http://superiorgoldgroup.net/2010/06/15/silver-prices-may-present-buying-opportunity/#comments Tue, 15 Jun 2010 17:51:00 +0000 Bruce Sands http://superiorgoldgroup.net/?p=53

Wednesday, June 9, 2010

- By Superior Gold Group

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.

]]> http://superiorgoldgroup.net/2010/06/15/silver-prices-may-present-buying-opportunity/feed/ http://superiorgoldgroup.net/2010/06/12/euro-crisis-pushes-gold-to-yet-another-record/ http://superiorgoldgroup.net/2010/06/12/euro-crisis-pushes-gold-to-yet-another-record/#comments Fri, 11 Jun 2010 22:48:44 +0000 Bruce Sands http://superiorgoldgroup.net/?p=52 - 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.

Elsewhere, a report from Bloomberg News quoted Paul Walker, CEO of GFMS, Ltd., as saying that gold prices could trade between $1,050 and $1,300 for the rest of this year, with the potential to soar as high as $2,000 per ounce if the current European debt crisis extends to other regions of the world.

The current sovereign debt crisis focuses on fears that Greece, followed by Spain and Portugal, will eventually default on its bond obligations, which would result in billions of dollars in fresh losses for European banks.

However, the United States and other countries, including Mexico and Great Britain, have been receiving their own levels of investor concern about heavy budget deficits and long-term fiscal problems.

If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.