|
 |
|
|
|
Gold Firms In Tandem With Dollarby Peter A. Grant
Mar 27, AM 
Gold has been remarkably resilient in the face of recent dollar strength, as the euro continues to suffer amid ongoing worries that the debacle in Cyprus will spread to other eurozone members. The yellow metal has once again rebounded from tests below $1600, even as the dollar index pushed to new four-month highs.The euro fell back below 1.2800 against the dollar for the first time since November as Cyprus prepares to reopen their banks on Thursday. The banks will be implementing strict capital controls, likely including a limit on the amount of money that can be taken out of the country. Security is expected to highly visible and tight. With the European Parliament now looking to use the Cyprus "bail-in" as a template for the rest of Europe, banking shares are taking a beating. It would seem that many in Europe had the misconception that their bank deposits were completely safe. What Cyprus makes glaringly clear is that if you have deposits in excess of the insurance level, you are at risk of confiscation. And keep in mind, Cyprus and the troika were prepared to override the deposit insurance initially and take a percentage of deposits less than €100k as well. They only backtracked on that part of the deal after objection to such a plan, suddenly the deposit insurance was a European "principle" not to be trifled with. Not surprisingly, European bank shares are under pressure, on expectations savers will start withdrawing to get below the deposit insurance level. While the FDIC insures deposits in the U.S. up to $250k, there are many individuals and companies that routinely maintain balances in excess of this level. Clearly, U.S. depositors are not being adequately compensated in terms of yield for this risk. So it might be time to make some moves to protect ones savings; to get at least a portion of your savings out of the dollar and out of the banking system and into gold. NEWSLETTER SIGN-UP Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wednesday March 27
website support: sitemaster@usagold.com
Site Map - Privacy - Disclaimer
The USAGOLD logo and stylized gold coin pile are trademarks of
Michael J. Kosares.
© 1997-2012 Michael J. Kosares / USAGOLD All Rights Reserved
(from USAGOLD.com) --