Greece - Gold - Silver - Mining Stocks

The news from Europe is all about Greece. Will the Euro community bail Greece out or will it allow it to struggle on its own. There are conflicting stories from over the Atlantic. It may be that this will be determined by the pending sale of Greece bonds this week.

Nevertheless, the impact upon the Euro has been extreme and likely overdone. Similar to the overdoing of Brazil's announcement of buying dollars to lower the value of the Real. One result in terms of Euro is that it takes a record amount of Euros to buy gold. That is, that gold reached an all time high in terms of Euro.

Here we see that both gold and silver are trading in a higher range for the time being. Both seem to be backing off a bit from yesterday.



From MineWeb.com:

The song, dance, bad fever, of gold stocks

That Barrick name popped up, amid the aroma of a three Windhoek draughts, Africa's finest lager.

Author: Barry Sergeant
Posted: Wednesday , 03 Mar 2010

JOHANNESBURG -

A former executive of a major mining company taken over some years ago by Barrick was last night lamenting the behaviour of the NYSE stock price of the world's biggest gold digger. The subject arose between, as it were, three tall glasses of very cold Windhoek draught, the natural choice of lager connoisseurs on the African continent.

There's lots of truth in that, and some truth in Barrick's stock price moves. The dollar gold bullion price churned between USD 550.00 and USD 700.00 an ounce for most of 2006 and 2007; Barrick's stock price traded around USD 30.00 a share across 2006 and then until around mid-2007, when it started to explode, to later make record levels above USD 53.00 a share in May 2008. It had taken 20 years for the stock to make it as a "ten bagger", even if only briefly. Read it HERE.

From MineWeb.com:

Gold entering period of rising prices as currencies depreciate

Despite some apparently poor fundamentals, gold could well be set for a further rise this year as investor sentiment remains strong.

Author: Lawrence Williams
Posted: Thursday , 04 Mar 2010

SYDNEY -

The price of gold has seen a fairly strong recovery over the past few days - in part because perhaps fears for the Euro have diminished, but almost certainly because also there is a degree of nervousness out there about virtually all currencies, with gold seen as providing some stability in a sea of quantitatively eased paper. T here has also been some positive news too - there are signs that demand for gold bullion and gold jewellery is beginning to return in the traditional gold-buying areas - India in particular. Demand is also seen as remaining high in China. Gold mine production may be on the increase again, but only marginally so and not at a sufficiently level to change the overall supply/demand picture, and this following several years of continuing decline. Read it HERE.

Just as the Euro price of gold, the dollar price will be escalating in the near future as the dollar is depreciated. There seems to be a growing recognition that gold and silver are real money opposed to the unbacked paper trash we are forced to use as money.

From MineWeb.com:

Commodity prices outpacing global recovery - CIC

The Chinese sovereign wealth fund says the increase has been fuelled by loose monetary policies globally

Posted: Thursday , 04 Mar 2010

BEIJING (Reuters) -

China Investment Corp [CIC.UL], China's sovereign wealth fund, believes global commodity prices are outpacing the global economic recovery, fuelled by loose monetary policies worldwide, a top official said on Thursday. Short read HERE.

From BusinessWeek.com:

Gold Rises to Six-Week High on Demand for Currency Alternative

By Nicholas Larkin and Pham-Duy Nguyen

March 3 (Bloomberg) -- Gold climbed to a six-week high in New York on speculation that escalating sovereign-debt concerns will boost demand for the metal as an alternative to currencies.

Greek Prime Minister George Papandreou announced an additional 4.8 billion euros ($6.6 billion) of deficit cuts as he tries to convince European allies and investors that he can tame the region’s biggest budget gap. Gold priced in euros climbed to a record yesterday. Read it HERE.

The time will come when gold is craved to preserve wealth as the sovereign debt bubble begins to deflate. We must all recognize this fact and prepare as best we can for the bursting of this other hidden balloon.

From Ed Steer's Gold and Silver Daily: "Each central bank sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world. - Carroll Quigley"

Reminds me of the correct saying, "He who holds the gold rules." But this time it is "He who creates the currency rules." Not good but true.

Miners from Scottrade.com:

Currencies from Kitco.com:

Some prices: BYDDF 8.19 (down 0.39); FVITF 2.3146 (holding its own well); XDSL 0.0255 (Still in a rut, but holding value well); SNWT 0.106 (Down lower); JINFF 3.94 (Chinese Gold miner holding well); DOW 10404 up 6.60; Gold off 11.10 to 1125.50; Silver off 0.05 to 17.15.

The general market seems to be drifting along in a rather narrow trading range going no where. One would expect it to break out from this range either up or down. The economic situation here in America would seem to indicate that the direction will be down, but these are strange markets.

Were Gold to close above 1150, I would suspect that it will climb must higher to the 1500 range. That is likely this year, but we need to be above 1150 which we almost reached yesterday.

Rest comfortably in the Lord and seek Him and His way of life daily. We must have a Christian world and life perspective and stick to it to be in harmony with God. He demands this and has placed the world and all under the control of King Jesus. Realize this and act upon it.

Best to each, Doug