Current Metals Market Update
By: John Fisher
Here is an overview of the current and significant action in the market:
- Euro is falling fast and hard 1.30 to below 1.285 in just this week so far. Why? A combination of the following:
- The Greek Prime Minister has hinted at the possibility of default in March
- Deutsche Banks’ shares are suspended briefly on concerns of insufficient bank capital
- France’s borrowing costs are ballooning
Despite the dollar strengthening, gold has decoupled for dollar strength even if only briefly and is holding up very well.
Indian demand for silver is so strong at the present time that metal for current delivery costs more than that for future delivery.
All Things Considered – John’s Commentary:
Action to take: When, not if, Greece defaults, look for a spike in gold when those in denial are faced with reality. Make certain you have your gold position now! If you don’t, don’t wait.
Quote of the day: “Whenever an overall breakdown of a monetary or financial system occurs, return to gold always restores order, revives confidence and brings back prosperity.” – Donald Hoppe
