What Special Counsel Jack Smith Said About the Trump Indictment Was Eye-Opening
Trump Indictment Excitement, EVs Will Battle Racism, and Another FBI Scandal Getting Ignor...
Biden’s Backdoor Student Loan Bailout Threatens to Soak Taxpayers
Megyn Kelly and the Platinum Rule
Time for Western Democracies to Stand with Iranian People
Why Does the Left Want No Future For Any of Us?
Is Europe Waking Up From the Net Zero Nightmare?
Where There's Smoke There's Hysteria
Rep. Andy Biggs Says Mayorkas Is Intentionally Destroying the U.S. Border
Liberal News Host Melts Down After Guest Points Out Hypocrisy In Trump Indictment
New York State Democrats Look to Bring Back Gerrymandered Election Rigging Once Again
Biden Criticized For Not Being Interviewed Yet In Classified Docs Probe As Trump...
Trump Was DJ-ing, Playing Elvis Hours After Learning of Second Indictment
Trump's Indictment Reveals Who Is On Trump's Side and Who Wants Him Destroyed
Dem Governor Vetoes Trans Student Bathroom Bill

Gold Up On The Week

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

After a choppy start to the week, gold powered steadily higher through the week, even on days the dollar gained against other currencies. Gold was up on the week and higher for the month so far. 

Gold finished the week at $1,627.20 and silver ended at $28.66, bringing the silver/gold ratio to 56.7.  There are big forces poised to move gold next week and it could be a rough ride. 

The elections in Greece are today (Sunday), so by the start of trading tomorrow we’ll know whether Greeks decided on indefinite austerity to stay with the euro or reject further belt tightening and opt to return to the drachma.  If the election is inconclusive, creditors could force the issue and push Greece out of the euro anyway. 

What I find astounding in the Greek drama is that a country roughly the size of Colorado can cast a shadow over the entire global economy.  But it is what it is and a Greek exit from the euro could fuel gold sales. 

The trouble in Europe could add more pressure on the U.S. Federal Reserve to provide another jolt of stimulus cash if the European contagion washes up on U.S. shores.  In truth it may not matter with roughly $6 trillion in new money already on the Fed’s balance sheet, the instability of that much cash in the system is already driving gold sales. 

As a hedge against economic uncertainty, central banks around the world added over 450 tons of gold last year, the most in five decades and are expected to add another 400 tons in 2012, according to the World Gold Council. 

Keep in mind that most of the short-term price action is being dictated by speculators like hedge funds.  Those institutional investors trade futures and bullion-backed exchange traded products; those trades can induce large swings in gold prices with very little connection to actual physical trades. 

Added to all that is the interesting news that, for the last five years, the wealthy have been adding to their “treasure assets”, which would also include gold and silver collectible coins. 

All in all it promises to be a wild ride in gold prices this week, with most of the big money betting on higher prices.  Fasten your seatbelts and return your tray tables to full upright and locked position; it’s going to be a bumpy ride. 

Chris Poindexter, Senior Writer, National Gold Group, Inc

Join the conversation as a VIP Member


Trending on Townhall Video