By Barry Stuppler - MintStateGold.com
Gold rallied today on Greek debt concerns and in the face of a sharp increase in the U.S. Dollar (versus the Euro) and a $5 drop in Crude Oil. Gold is proving to be the ultimate safe haven in time of crisis. At 11am PDT gold was trading at 1,526.20, up $3.40 an ounce on very active trading.
Over 100,000 Greeks are demonstrating and rioting in Athens today, upset over a 28 Billion Euro (US $40 Billion) austerity program needed before the Eurozone nations and IMF will help them with their debt problem. Is this a harbinger of things to come in the U.S.? The U.S. Congress, along with many State legislators, may call it 'cutting government expenditures' but it will be looked at as an austerity program by unions and civil servants.
Late yesterday the London-based Standard Chartered Bank made an extraordinary prediction that gold will more than triple to $5,000 an ounce because of a lack of supply, not just because of a surge in demand. “There are very few large gold mines set to commence operation in the next five years,” said Standard’s analyst Yan Chen in a report Monday. “The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold. The Bank focused its study on the supply-side of the gold equation. After analyzing 345 gold mines and 30 copper/base metal gold mines around the globe, the team estimates annual gold production growth will be just 3.6 percent over the next five years.
Read the complete article at http://www.mintstategold.com/investor-education/cat/news/post/gold_supply_shortage
Silver is continuing yesterday’s rally off the $34.50 support area. At 11am PDT Silver is up 22 cents, trading at $35.70 per ounce in very active trading. The fact that Silver is up today with a stronger dollar and a sizeable drop in crude oil (both are anti-inflationary indicators) is truly surprising. If silver can hold at above $35 until Friday, I would strongly recommend adding more Silver to your holdings. We are watching physical demand very carefully in Asia and in the U.S. as an additional indicator.