A new sheriff in town

So far this week we have experienced a $41.30 range in the August Globex market notching another all-time high of $1266.50 on Monday and trading as low as $1225.20 during the Wednesday session. This volatility is a direct result of the continued uncertainty with the fiscal crisis in the European Union as well as the growing geo-political tensions world -wide. Gold and Silver tend to do better than most commodities in times of crisis and warring environments as investors tend to look for “safer environments”.. investors are seeking tangible investments….This is happening globally…
The underlying fundamental has been and continues to be the over whelming demand globally for physical Gold as “safer haven” investment. The lack of confidence in fiat currencies has caused this phenomenon this was reported Wednesday…..
There are unsubstantiated reports from an Iranian news agency:
There are reports that a large American Military force has massed in Azerbaijan on the northwest border of Iran. This coincides with a report the Pentagon confirmed over the weekend regarding “an unusually large U.S. fleet” sailing through the Suez Canal . Iran has been boasting to the world that they possess 17 kg of 20% enriched uranium ready….KEEP a very close eye on this situation !!!!
The Purchase of new homes in the United States dropped in May to its lowest level on record. Sales dropped 33% much worse than the 19% projected by economists. The number of Americans applying for jobless benefits decreased by 19,000 to 457,000….This is good news!!!
Many economists believe the European Union crisis has caused some employers have delayed their hiring plans until the region shows improvement . Given the current climate of the world I expect the choppiness and volatility to continue. In spite of record price levels the physical demand for both Gold and Silver remain extremely high. Investors have become convinced that the “precious metals” are a better long term alternative.
Mike Daly / Gold Specialist

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