Monetary “Floodgates” And Geopolitical Unrest To Support Precious Metals

Thursday, September 13, 2012
By Paul Martin

GoldCore
GoldSeek.com
Thursday, 13 September 2012

Gold was down only $0.10 or 0.01% in New York yesterday and closed at $1,732.00. Silver hit $34.065 yesterday and then dropped to as low as $32.482 and then also rebounded, but it finished with a loss of 0.6%.

It is worth remembering that gold, silver and the platinum group metals (PGMs) have seen strong gains in the last 30 days and therefore a correction is possible.

In the last 30 days (since August 13th), platinum has risen by 18.9%, silver by 18.7%, palladium by 18.4% and gold by 7.6%. All remain well below their nominal record highs (see charts) and more importantly well below their inflation adjusted highs.

All will most likely continue to rally especially if the Fed announces QE3 today as investors turn to precious metals to hedge substantial money printing by governments and the real risk of future inflation.

“The Euro bailout measures and the opening of the monetary policy floodgates by the central banks are likely to result in higher inflation in the medium to long term,” says today’s Commerzbank commodities note.

The strikes and violence in South Africa’s gold and platinum industries are supporting and may contribute to higher prices.

Machete-wielding strikers forced Anglo American Platinum, the world’s No.1 platinum producer, to shut down some of its operations in South Africa, sending spot platinum to a five month high of $1,654.49.

Spot palladium gained 0.9% to $677.20, and reached $680.50 earlier in the session — a four-month high yesterday.

The Rest…HERE


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