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Gold Investments Market Update − Gold Surged to New Record Highs in EUR and GBP

Wed, Oct 15 2008, 12:37 GMT
by Mark O'Byrne

GoldCore


Gold continues to consolidate after its 3% rise last week. Given the scale of money creation and digital money printing taking place in the US and internationally, gold looks set to surge in the coming weeks as physical demand is unprecedented and supply remains lacklustre at best.



While the gold price has not been as strong in terms of US dollars in recent weeks as some have expected, it is important to remember that the dollar has been the strongest currency in the world in recent weeks. As the financial contagion spreads internationally, other fiat currencies internationally fell against the US dollar which some had seen as oversold as the dollar had already fallen sharply in recent years.

In recent days, gold has surged in price to new record highs in terms of UK pounds and euro as these currencies have weakened considerably against the dollar (thus nearly all of Gold and Silver Investments UK and Irish investors in gold are enjoying healthy profits despite the global financial and economic crisis).

Gold's sharp rise in all major currencies is very bullish for gold. Gold is surging to record highs in nearly all major currencies as the credit and systemic crisis spreads internationally (see hyperlinked page below charts).

With bullion shortages deepening and physical demand unprecedented while supply remains static at best, prices will continue to surge, especially as investors and institutions are now no longer looking for yield or to make returns, rather risk aversion and wealth preservation is rightly the name of the game.




http://www.research.gold.org/prices/daily/

There is now the possibility of competitive currency devaluations and a global monetary crisis with severe inflation being experienced by economies internationally, but especially in the larger debtor nations. Talks of Zimbabwean style hyperinflation for major economies is likely over the top but severe inflation and stagflation looks increasingly likely and the present slight moderation in inflation rates is likely a temporary phenomenon.

There is now the possibility of competitive currency devaluations and a global monetary crisis with severe inflation being experienced by economies internationally, but especially in the larger debtor nations. Talks of Zimbabwean style hyperinflation for major economies is likely over the top but severe inflation and stagflation looks increasingly likely and the present slight moderation in inflation rates is likely a temporary phenomenon.


Gold and Silver Investments Limited  | 63 Fitzwilliam Square, Dublin 2, Ireland
http://www.goldcore.com | info@goldcore.com

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The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Gold and Silver Investments Limited, trading as Gold Investments is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

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