Serpo
11th August 2011, 02:59 PM
The CME announced margin requirements on gold will rise by over 22% by close of business today. This saw an initial slight sell off prior to further gains.
A rise in CME margin requirements may lead to speculative long elements getting squeezed and to short term weakness in gold. However, the scale of physical demand internationally is such that any sell off will likely be brief and reasonably shallow.
Gold remains in a strong upward trending channel and until we see a breach of this to the downside, it should continue to move higher. Any pullback will again be used by astute buyers to accumulate bullion on the dip.
There continue to be many important breaking news stories regarding the global debt crisis and pertaining to gold – indeed it is often difficult to keep up with developments.
One such development is today’s edition of Germany’s best selling newspaper Bild which encourages German people to buy gold due to the risks posed to the euro and to cash (see Bild article in Commentary).
Bild Zeitung, is Germany’s biggest- selling newspaper, is the best-selling newspaper outside Japan and has the sixth-largest circulation worldwide.
Bild encouraged German people to invest in gold as the global debt crisis continues to deteriorate and cause turmoil in global markets.
“While the companies listed on stock exchanges have lost over the past 14 days, about $8 trillion dollars in value, the price of gold climbed to a record high.”
“While money can be printed, gold reserves are limited. To date some 150,000 tonnes of gold have been mined.”
Gold “is better than cash,” the newspaper said. “While any amount of money can be printed, gold is limited,” making it “one of the safest investments in crisis times.”
The article is interesting as gold has remained taboo is much of the non specialist European press and media and was only briefly covered in recent days due to the deepening crisis and succession of new record nominal highs.
German demand for gold has been very robust in recent years and the Germans experience of the Weimar hyperinflation means that they are very aware of the risks posed by today’s excessive money printing and global currency debasement.
http://www.prisonplanet.com/germany%E2%80%99s-best-selling-tabloid-bilds-front-page-encourages-readers-to-buy-gold.html
A rise in CME margin requirements may lead to speculative long elements getting squeezed and to short term weakness in gold. However, the scale of physical demand internationally is such that any sell off will likely be brief and reasonably shallow.
Gold remains in a strong upward trending channel and until we see a breach of this to the downside, it should continue to move higher. Any pullback will again be used by astute buyers to accumulate bullion on the dip.
There continue to be many important breaking news stories regarding the global debt crisis and pertaining to gold – indeed it is often difficult to keep up with developments.
One such development is today’s edition of Germany’s best selling newspaper Bild which encourages German people to buy gold due to the risks posed to the euro and to cash (see Bild article in Commentary).
Bild Zeitung, is Germany’s biggest- selling newspaper, is the best-selling newspaper outside Japan and has the sixth-largest circulation worldwide.
Bild encouraged German people to invest in gold as the global debt crisis continues to deteriorate and cause turmoil in global markets.
“While the companies listed on stock exchanges have lost over the past 14 days, about $8 trillion dollars in value, the price of gold climbed to a record high.”
“While money can be printed, gold reserves are limited. To date some 150,000 tonnes of gold have been mined.”
Gold “is better than cash,” the newspaper said. “While any amount of money can be printed, gold is limited,” making it “one of the safest investments in crisis times.”
The article is interesting as gold has remained taboo is much of the non specialist European press and media and was only briefly covered in recent days due to the deepening crisis and succession of new record nominal highs.
German demand for gold has been very robust in recent years and the Germans experience of the Weimar hyperinflation means that they are very aware of the risks posed by today’s excessive money printing and global currency debasement.
http://www.prisonplanet.com/germany%E2%80%99s-best-selling-tabloid-bilds-front-page-encourages-readers-to-buy-gold.html