Gold’s price drop has been well documented over the past few weeks. There have been many factors leading up to the shift in price. However, in the view of many investors, this is an opportunity based on a closer look at the numbers. CNBC Contributor Dennis Gartman was quoted in an interview as saying, “The public is massively bearish and that tells me it’s time to be bullish.” He later added, “Most people don’t think gold and stocks can go higher together, but I expect to see them trade dramatically higher over the course of the next several months,” he says. “The trend is now higher.”
The news from the World Bank could be a negative sign for the Asian region as a whole. Reports show that growth in the region has slowed from 10% in 2010 to 7.6% this year. The main factor is in China where the slowdown has had the largest effect. However, these rates are much stronger than the growth rate in the U.S.A., where the economy grew only 1.7% last year.
Germany has come up with a new idea to put an end to the finical disaster that is Greece. The plan would call for Greece to stay in the European Union, but adopt its own currency (Geuro). This idea has many positives. First, it gives Greece a chance to balance its budget without support from lenders. It will also allow them to reject the austerity program that they have been opposed to from the start. Thomas Mayer of Deutsche Bank noted on the idea of a separate currency for Greece, “Initially we would expect a large depreciation, but the Greek authorities would have the power to stabilize or even strengthen the exchange rate of the Geuro against the euro, via prudent fiscal policy and structural reform, so as to keep the door open to a future return to the euro.”
At 1:00 p.m. (EDT), the APMEX precious metals spot prices were:
- Gold – $1545.30- Down $32.80
- Silver – $27.42 – Down $0.85
- Platinum – $1415.90 – Down $44.50
- Palladium – $593.20 – Down $24.40