Gold prices took off early in the day as reports from the European Central Bank said the banks in the region could experience another round of loan losses, this time up to $237 billion over the next year and a half.
The uncertainty of the economic fallout from Portugal, Italy, Ireland, Greece and Spain have investors concerned over how deeply it will impact the economy, and how far it'll spread to other nations, making gold the choice for those looking for safety.
News that China manufacturing dropped in May also reminded investors of some of the vulnerabilities there which could dramatically reduce economic activity there and abroad.
Gold futures were trading at a two-week high Tuesday in response to the news.
Tuesday, June 1, 2010
Where is June Gold Going?
After a couple of months of gains, the turbulent economic conditions around the world have had gold have a lot of ups and downs, although the underlying fundamentals remain the same.
An element in regard to gold investing we need to keep in mind is the same one in any market where traders and speculators enter, and that is their involvement push price swings even further than they'd normally go, and gives the impression of uncertainty and strong movement one way or the other.
We'll see that going forward until uncertainty in the markets and economic conditions around the word abate, which isn't going to be any time soon.
The fundamentals of gold are simple: inflation protection, safety and your wealth holding its value. Nothing there is going to change, and the sovereign debt crisis hanging over Europe, and China battling inflation will continue to move the price of gold upward, although now that there is a lot of volatility there, speculators will make those price movement even more pronounced, while those that don't understand that background could think it's because of something they're missing, when it's just because of the current market and economic creating the type of volatility that speculators love to enter into.
Gold prices should experience a lot of these swings in June and beyond, and unless something on the macro economic level changes in a significant way, Gold prices will continue to go upward, although more erratically that than in the past.
An element in regard to gold investing we need to keep in mind is the same one in any market where traders and speculators enter, and that is their involvement push price swings even further than they'd normally go, and gives the impression of uncertainty and strong movement one way or the other.
We'll see that going forward until uncertainty in the markets and economic conditions around the word abate, which isn't going to be any time soon.
The fundamentals of gold are simple: inflation protection, safety and your wealth holding its value. Nothing there is going to change, and the sovereign debt crisis hanging over Europe, and China battling inflation will continue to move the price of gold upward, although now that there is a lot of volatility there, speculators will make those price movement even more pronounced, while those that don't understand that background could think it's because of something they're missing, when it's just because of the current market and economic creating the type of volatility that speculators love to enter into.
Gold prices should experience a lot of these swings in June and beyond, and unless something on the macro economic level changes in a significant way, Gold prices will continue to go upward, although more erratically that than in the past.
Will Gold ATMs Catch on?
As economic fears drive gold prices to new highs, the creator of a gold-dispensing ATM is attracting attention around the globe.
Germany-based GOLD to go, which is currently churning out 50 gold machines a month to meet a recent jump in demand, launched its first ATM in Abu Dhabi's Emirates Palace Hotel earlier this month and opened its second in Germany last week.
The golden ATM's next destinations are the Bergamo Airport in Milan, Italy, all major airports in Malaysia, one of Russia's biggest banks and an undetermined location in Turkey.
By making gold investing as easy as buying a candy bar from a vending machine, GOLD to go hopes to attract average buyers to the gold market.
"We are going to make gold public with these machines," said Thomas Geissler, CEO of Ex Oriente Lux AG, which owns GOLD to go. "The prices are so easy to control that we're going to de-mystify gold and make it easier for anyone to buy it."
GOLD to go's ATM looks like a vending machine and dispenses gold coins and bars weighing up to one ounce at prices updated every 10 minutes based on the real-time spot price of gold.
ATM-owners can choose from a variety of other gold items, such as gold Canadian maple leaf coins, South African Krugerrands, and even some custom designs. For example, the special edition gold medallion it engraved with the Palace Hotel's logo was created for the United Arab Emirate debut.
rest of story
Germany-based GOLD to go, which is currently churning out 50 gold machines a month to meet a recent jump in demand, launched its first ATM in Abu Dhabi's Emirates Palace Hotel earlier this month and opened its second in Germany last week.
The golden ATM's next destinations are the Bergamo Airport in Milan, Italy, all major airports in Malaysia, one of Russia's biggest banks and an undetermined location in Turkey.
By making gold investing as easy as buying a candy bar from a vending machine, GOLD to go hopes to attract average buyers to the gold market.
"We are going to make gold public with these machines," said Thomas Geissler, CEO of Ex Oriente Lux AG, which owns GOLD to go. "The prices are so easy to control that we're going to de-mystify gold and make it easier for anyone to buy it."
GOLD to go's ATM looks like a vending machine and dispenses gold coins and bars weighing up to one ounce at prices updated every 10 minutes based on the real-time spot price of gold.
ATM-owners can choose from a variety of other gold items, such as gold Canadian maple leaf coins, South African Krugerrands, and even some custom designs. For example, the special edition gold medallion it engraved with the Palace Hotel's logo was created for the United Arab Emirate debut.
rest of story
Subscribe to:
Posts (Atom)