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Keep Buying Gold

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The reasons to keep buying gold 13 November 2009 when as the world economy has begun its recovery after the historical crisis stage, gold still shines against all odds and going for more. The ounce of gold already surpassed the US $ 1,100 dollars and connoisseurs are still correcting their estimates upward. Goldman Sachs (NYSE:GS), just place the value estimated at US $1,200, conditioned that the value of the dollar stays low in terms of the rest of the international currencies. Will be USD 1,200 per ounce the maximum level that can reach the gold? There are elements to think that not and that can continue to grow beyond this limit envisioned by Goldman Sachs. In order to have an approximation of the potential to increase that has the price of gold, the first thing we must do is relieve the factors that can continue upward. The weakness of the dollar is always the first reason mentioned. The Economist from Spain, reproduced the following opinion of Commerzbank: while the dollar continue its bearish trend, is very unlikely that the price of gold down significantly. This is a very simplified vision of the factors influencing the price of golden metal.

In relation to the question of the dollar worth making a distinction between nominal and real parities with respect to the rest of the major currencies. In this sense, even though the dollar is at its minimum levels against major international currencies, the highest rate of inflation in the last time (and also expected) in the American economy, reduces the real exchange rate depreciation to the United States, which can make us think that there is still a considerable margin so the dollar continue losing value against the rest. And logically that the weakening of the dollar, which is expected, keep, helps the rise of the price of an ounce of gold, but there are other factors that also have their share of explicatividad in this phenomenon. Such as Ainhoa Gimenez de Bolsagora also pointed you to an increase of the demand for Asian countries by the hand of its economic recovery.

The ECB Again Buying Sovereign Debt Of Italy And Spain By Speculative Attacks

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It is the second week that the Central Bank purchases sovereign debt by the euro crisis. The European Monetary Authority does not specify countries that purchased debt amounting to 14,291 million euros. Germany continues with its fierce opposition to the issuance of common eurozone debt. The European Central Bank (ECB) bought last week public debt amounting to 14,291 million euros, which include mostly Spanish and Italian bonds. Both countries are being tabulated by the markets, which are wary of their ability to pay their debts. The ECB has reported this Monday that has intervened in the secondary market for government debt of the euro area for a second consecutive week. Then he wore since March without buying government debt.

Meanwhile, the European locomotive Germany, supported by the President of the European Council Herman Van Rompuy and France, still maintains a fierce opposition to the issuance of Eurobonds, common bonds for the eurozone. At the risk of increased inflation with the purchase of debt public, the ECB withdraw from the market Tuesday, seven days, some 110,500 million euros at a variable rate tender which will offer commercial banks a maximum rate of interest of 1.5%. Last Monday it already acquired debt of Italy and Spain, achieving that differential who paid both countries by financing connection Germany down 300 basis points from 400 points above dimensions.Until then, the only ECB had acquired debt of countries such as Greece, Ireland and Portugal and Max of 16.5 billion euros buying had occurred in May 2010. The European Monetary Authority does not specify the countries which have bought the debt, but said in early August that it would proceed to acquire bonds of Spain and Italy after speculative attacks, which have confirmed the operators in the markets since then. The ECB has acquired in the euro area public debt amounting to about 110,500 million euros. August 4, the Governing Council of the ECB decided to keep the programme of purchase of government debt to help countries facing financial difficulties despite the opposition of the President of the Bundesbank, Jens Weidmann. The ECB has been criticized for purchasing sovereign of Spain and Italy while she decided to take this measure to calm the markets, after hard attacks on European stock markets. Source of the news: the ECB buying sovereign debt of Italy and Spain by speculative attacks again

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