Precious Metals

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Gold: Dawn of the 2nd Half

Erwin Matula - -

You cling once all previous reports and discussions of interest rate increases, budget and the Fed in the U.S., so the next headline about a bull market for "hard money, ie gold and silver, the second half could determine.

This view Adrian Ash, author of Feed in mining , and explains this as follows:

1. Japan doubled within 2 years of its money supply, and China every day generates a new $ 2 billion liquidity support for their financial system.
2. Wage negotiations, the South African gold industry have been canceled after wage increases of 60% to 100% required, but only 5% were offered by the employer side.
3. Major banks, building crash risk another 5 years after the financial crisis, need fresh money again. Barclays Bank, titled widely regarded as the bestsituierte Bank of England, is according to a BBC interview with approx. 20 billion euros undercapitalized. The German bank paid alone in the months of April to June to 630 million euros to settle the litigation on bad investments in American mortgages may.

So now we are left with a heavily revised gold and silver prices. Overall, the biggest setback in the last 3 decades. And in the meantime, the major banks have earned back magnificently to the American long-term bond rates.

These have risen after the Fed has put the screws back in view of the printing press. And this seems credible front handle times after the "U.S. Treasury" had announced on Monday that the deficit - that is, the difference between revenue and expenditure of Washington - has fallen by 40% in the current fiscal year.

Although languish over the summer, the general trading activities rather so big names with a longer time horizon in their strategy so far have bought gold.

Michael Cuggino, president of the $ 12 billion heavy "Permanent Portfolio Family of Funds" is of the opinion that gold will gain in the long term by increasing inflation.

Marc Mobius, the emerging Martel Specialist at Franklin Templeton, a fund house with approx. 813 billion USD investment capital, sees a wide gap between real demand and derivatives. For him, a classic sign of a rising gold price at sight.

On this topic also assumes the Swiss bank UBS as one of the leading commercial banks for gold specifically comment. It evaluates China's demand for gold as absolutely "strong", for one thing, as the second largest world economy has restricted access to precious metals by installing depots.

To reduce the U.S. deficit, UBS says the following:

• The deficit forecast for 2013 still amounts in the United States to over 1, 000 billion, ie the 4th highest in the history
• The deficit reduction comes from a single repayment by Fannie and Freddie to $ 66 billion. Money they have received in the crisis of 2008.
• this is all just the stupid game every year with the debt ceiling, but with the same risk of the game with the panic that had already increased to over $ 1, 920 gold in 2011.