Europe

Almost certainly prices for goods in Cyprus will rise as a result of its banking crisis, because the imposition of capital controls will restrict imports, leading to supply bottlenecks. In addition residents will no longer be complacent about keeping money on deposit, but seek other alternatives.

The London Bullion Market is the global trading centre for physical gold, and the Bank of England holds gold on behalf of other central banks.

This has been an excellent week, not only for the gold price which is set to make a weekly gain but also for The Real Asset Company where we have seen increasing interest in our Singapore vault since its launch last week.

This month, The Real Asset Company announced the launch of a new campaign to Buy Britain’s Gold Back.

Fundamentally Europe is still in serious trouble but in no real worse shape than most other developed economies, but for the moment Europe remains in the spotlight.

Great Britain was once the proud leader of the Classical Gold Standard.

So far, 10 European political leaders out of 17 have been ousted out of office like a falling dominos in a little more than a year.

We’ve talked about the Eurozone a lot these last few months

We’re getting whiplash from all the political changes in Europe, neo-Nazis in an unstable government in Greece and a changing of the guard in France– “adieu” to Nicolas Sarkozy

In bull markets, corrections and consolidations are needed to periodically cleanse the market of extreme optimism and an overbought condition….

Source: Brian Sylvester of The Gold Report (6/29/11). In this exclusive interview with The Gold Report, Doug Groh, senior analyst with Tocqueville Asset Management, likens the gold price to a mirror that reflects peoples’ concerns about global economic and political events. And he likes what he sees in the long-term prospects for gold equities.   … Continue reading

Economic data is coming in mixed today. While initials jobless claims dropped to the lowest level since July 2008, median home prices fell to a 7-year low. With such conflicting data, the question naturally arises: Will the U.S.  economy recover, especially without real estate leading the way? To get a glimpse of what awaits us, we should turn to Europe. Ireland … Continue reading