Gold Price Hits Record High As The Bernank Hints at QE3 !

• Gold is on a tear this week. The price of gold is a calamity indicator. The higher the price is, the market is signalling fear and trepidation. All eyes are on the Eurozone sovereign debt crisis. Will the dominoes start to fall soon, in autumn or ??? There is nothing else needed for a catastrophic collapse. All the triggers needed for the end of the current financial and monetary system are there. Do not wait to buy physical gold/silver! They are insurance against a global banking system meltdown!
  –
  Gold price hits record high!
  by Graeme Wearden, guardian.co.uk  
  Fears over inflation and European debt drive price of gold to $1,587 an ounce
  The gold price reached record highs on Wednesday as investors scrambled for safe havens in the face of Europe’s escalating debt crisis. Fears of higher inflation also helped to push up the precious metal by 1.2%. It hit its highest point of $1,587.46 per ounce after Ben Bernanke, chairman of the US Federal Reserve, hinted at further efforts to stimulate the American economy.
  –
  The gold price has now posted its eighth consecutive daily rise, gaining $100 per ounce since the start of July. Other precious metals also rallied, with silver gaining more than 5% to $38.30 per ounce.
  –
  Analysts said that gold was benefitting from fears that Spain and Italy will become the next members of the eurozone to need financial help. “With European sovereign debt fears intensifying again, [and] little clarity on what eurozone officials intend to do next … gold has been a beneficiary,” said UBS analyst Edel Tully in a research note. “This should, in theory, be gold’s time to shine as a safe haven and as an alternative currency.”
  –
  Gold has more than doubled since December 2008, and Bank of America-Merrill Lynch forecast on Wednesday that it would continue to rise for the next five years. Bernanke told the House of Representatives financial services committee that the strength of gold reflected “global uncertainties” and worries that the global economy faced a major crisis.
  –
  Eurozone hits the fan:  Gold price surging; Silver begins to make a move
  by Lawrence Williams, http://www.mineweb.com/
  The Eurozone crisis goes from bad to worse and QE3 looks to be on the horizon in the U.S. again. Gold and silver have moved up sharply and this path could well continue as bad news proliferates.
  –
  LONDON – For some weeks and months now, commentators writing on Mineweb have seen the current Eurozone debt crisis escalating to the point of defaults and despair. To a great extent the general public has let it pass by.  Probably 99% of the population has taken the view that this is some temporary phenomenon and won’t impact their lives.  But this head in the sand attitude is at last beginning to change – in Europe at least – and no doubt the realisation is beginning to dawn across the Atlantic that this is not just a European crisis, but a global one.  Many of the problems that are currently besetting the Eurozone are endemic in the U.S. at state level too and slowly, but surely, as poor economic data belies any talk of economic recovery, the realisation that things may get far worse before they even start to get better is beginning to dawn in the world’s biggest economy as well.
  –
  Today in Europe the mainstream news broadcasts are full of Eurozone debt related stories:  Irish debt downgrade to junk status following Portugal; talk of Greece being allowed some form of default; the looming debt crises in the big economies of Italy and Spain – the Eurozone’s third and fourth largest – coming to the fore again.  We are looking at financial collapse in a string of possible defaults across Europe and if they occur one doesn’t see how the global banking system can survive.  Those who have been preaching that gold may be the only investment out there which stands much chance of preserving one’s wealth – the ultimate safe haven – look like their views may be being vindicated as I write with the gold price jumping  up through $1570 and back within a hair’s breadth of its intra-day high of a couple of months ago.  It is almost certainly going to set a new London Fixing record this morning (indeed will have done so by the time this article sees the light of day) and the breach may extend all the way up to $1600, although last time we saw that coming back at the beginning of May we were quickly disillusioned.  But this time it looks to be different!
  –
  There is now again official talk in the U.S. of a continuation of some additional financial stimulus from the Fed being necessary to prevent the U.S. economy falling into recession again – QE3 by any other name – and even China, which has been seen as the globe’s saviour with its seemingly unending economic growth is facing severe inflationary pressures which are forcing the government there to tighten ever more which ultimately has to dent that economy’s advance, although still only back to a level that most Western governments would give their eye teeth to achieve.  The QE3 talk dented the dollar, which had been rising against the Euro over the previous few days, giving another boost to the dollar gold price.
  –
  … for the full article click here!

end