Spain hit by credit rating downgrade
Wednesday, June 2, 2010
Spain’s debt rating has been hit by high government deficits.
- By Bruce Sands
Gold and silver dealers around the world are continuing to hear from anxious investors in light of a euro zone debt problem that seems to show no sign of ending.
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Tuesday, April 13, 2010
Trouble in Greece may be good news for the gold market
- By Bruce Sands
The recent plan to help bail out the struggling Greek economy will have a positive effect on the gold market.
That’s the assessment of GFMS Ltd. Executive chairman Philip Klapwijk, who, according to Bloomberg News, told a precious metals meeting that gold could reach up to $1,300 per ounce as investors look for alternatives to bonds.
By the end of trading Monday, gold had slipped from a high of $1,170.70, to close the day at $1,160.10.
Analysts like James Moore from thebulliondesk.com feel that there is still plenty of growth potential for gold.
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Canada’s currency may be one to watch in the coming months.
- By Superior Gold Group
Investors who are wondering whether now may be a good time to consider dealer gold may be interested in recent news reports indicating that the Canadian dollar has been showing growing strength against its U.S. counterpart.
A report from Reuters notes that the Canadian dollar recently hit a 21-month high as it remained on the verge of matching or exceeding the value of the U.S. dollar.
It’s been a relatively slow day in the market as Fridays usually are. I am most likely sounding like a broken record about gold and the indexes but I will show you again just to make sure that everyone’s on the same page for the upcoming correction.
In short, major indexes and metals are way overbought and ready for a pullback which will most likely be sharp. I feel a 3-5% correction is just around the corner. Both the broad market and precious metals are about to have their cycles turn align and top out. Meaning a wave of selling is likely to hit the market.
Adding more fuel to the selling is the fact that earning season is about to start and I do not think it matters what the news for the market will sell into it. Everyone thinks stocks are doing well which is why we have seen the strong rally the past 2 months. This is the typical buy on rumor sell on news which we saw last January on the good earning numbers. But if the news is bad, then I figure people will sell that news also.
Greek default could have worldwide ripple effect
Tuesday, March 16, 2010
- By John March
The world financial community is considered likely to take at least some action in the coming weeks to bail out the Greece economy because of the impact a default could end up having.
Greece has been dealing with a financial crisis brought on by a deficit larger than its official had previously acknowledged, and which has undermined economic confidence throughout the European Union. A handful of other EU states have also been experiencing serious debt problems, which has invited speculation about the state of financial affairs in the United States, especially in regard to the deficit.
For example, an article from U.S. News and World Report notes if Greece were to default on its debt, it would likely reduce American exports because the dollar would be expected to rise against the Euro in the event of such a scenario. A stronger dollar would be likely to result in more expensive U.S. exports, damaging the economy in the process.
The news magazine also quoted one financial expert as warning that the higher interest rates brought on by a Greek default would potentially bring back the financial crisis and make any lingering economic difficulties worse. A Greek default could potentially make lending and borrowing around the world more expensive.
Also, the article added that even if Greece does benefit from a bailout by its neighbors, it won’t necessarily stop the economic problem because there is no guarantee that wealthy Greeks will stop withdrawing their money from the country’s banks and will otherwise stay committed to its financial system.
In the United States, concerns about the debt are more long-term in nature but they remain a very real concern in light of a federal deficit that will come in at $1.6 trillion this year on the way to exceeding $14 trillion.
Looking ahead, it already costs the U.S. government hundreds of billions of dollars just to make interest payments on the national debt each year, which invites speculation among financiers about how long this situation will be sustainable.
While government officials downplay the idea that the U.S. debt will eventually become unmanageable or subject to default, the threat is substantial in the longer term and could be one reason for investors to talk to some silver and gold dealers about what their options may be.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
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.
Friday, March 19, 2010
- By Bruce Sands
Silver mining remains an important part of Idaho’s economy, with a significant new operation set to get underway later this spring.
This week, Silver Falcon Mining announced that it will commence operations at its Diamond Creek Mill facility on April 19. Since last fall, the company has been preparing for this date by acquiring permits, making site improvements and taking other steps.