The song remains the same this week. Gold and silver up but the kiwi dollar up too, so we remain in this sideways trading range that we have been in for sometime.
The markets too seem trapped in a range – all eyes and ears transfixed, awaiting word from the US on their “debt ceiling”. It seems very unlikely that in the end they won’t come to some compromise. Obama and Co don’t want a default on their watch but equally the Republicans don’t want to be seen as the cause of a default and more hardship for the American people. So they’ll likely come to some agreement that postpones their day of reckoning yet again.
However I have read a couple of articles this week about the formation of a new “Super Congress”.
In a nutshell a way for a few people to gain more power and pass laws without them going through the “normal” Congress. So could the debt ceiling stand-off merely be a reason to grab a bit more power from the US people? Something along the lines of “We can’t have our economy placed under these sort of risks again so by passing these rules we’ll stop it from happening again”. Who knows but as has been said more than once these past few years – Why let a good crisis go to waste?
So the 2 August looms although we’ve also heard mention that they could eek out a few more days yet by some more “creative accounting”. So we could have another week or more of this sideways action yet.
This week we’ve got a short video from the World Gold Council. They get a bit of scorn poured on them at times from the “gold bug” community but they are the only source of statistics we’ve got to go by so we like to keep a close eye on what they have to say nonetheless. The short video outlines a study they recently commissioned to look at how gold performs in both an inflationary and deflationary environment. There’s a pdf you can download but we’ve summarized the content into a few short paragraphs so between the 3 minute video and that you can save yourself the time reading it.
As always if you’d like a quote for gold or silver – remember we can offer local bars, plus coins from the NZ mint and also from overseas, then please phone David on 0800 888 465 or email him at email@example.com.
Enjoy the rest of your week.
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