On other news, gold and silver bullion is disappearing in the German market. Vencit omnia veritas.
Gold Endures Pro Aurum's clients are taking refuge in a form of currency that people have trusted through the ages. The Reich mark, the East German mark, the German mark, the euro: Paper currencies may come and go, but gold endures. Or so they tell themselves, studiously ignoring the fact that the value of gold can also fluctuate enormously. The precious metal has never been so coveted. Within a year, the price has soared by one-third, and over the past few weeks it has climbed from one record to the next. The price of gold hit a new high in euros on Monday, trading at over €1,000 a troy ounce. Meanwhile the euro also fell to a new four-year low against the dollar, slumping to around $1.23. The price of gold is an indicator of people's lack of trust in their currency. And these doubts about the stability of the euro increases virtually every day -- despite, or perhaps precisely because of, the recent spectacular bailout of the European common currency system. The €750 billion ($950 billion) rescue package has calmed financial markets, at least for the time being. Stock markets have recovered and risk premiums on government bonds from the southern euro states have declined.
Gold Endures
Pro Aurum's clients are taking refuge in a form of currency that people have trusted through the ages. The Reich mark, the East German mark, the German mark, the euro: Paper currencies may come and go, but gold endures. Or so they tell themselves, studiously ignoring the fact that the value of gold can also fluctuate enormously.
The precious metal has never been so coveted. Within a year, the price has soared by one-third, and over the past few weeks it has climbed from one record to the next. The price of gold hit a new high in euros on Monday, trading at over €1,000 a troy ounce. Meanwhile the euro also fell to a new four-year low against the dollar, slumping to around $1.23.
The price of gold is an indicator of people's lack of trust in their currency. And these doubts about the stability of the euro increases virtually every day -- despite, or perhaps precisely because of, the recent spectacular bailout of the European common currency system.
The €750 billion ($950 billion) rescue package has calmed financial markets, at least for the time being. Stock markets have recovered and risk premiums on government bonds from the southern euro states have declined.
