This is sad but very true.
Jim Sinclair’s Commentary
Gold is now headed, with violence, into the $2000s.
Europe drives investors to gold
Nov 7, 2011 – 9:31 AM ET
By Susan Thomas
LONDON — Gold rose more than 1% on Monday as investors piled into the traditional safe haven asset as Europe’s debt crisis intensified on concerns about political instability in Italy and Greece.
Worries about Italy, where Prime Minister Silvio Berlusconi is battling party rebels threatening to bring down his government, have overshadowed a coalition deal in Greece to help secure its latest bailout package.
With Italy’s debt levels at 120% of GDP, the debt problems of the eurozone’s third-largest economy would pose a much bigger risk to the financial markets than Greece.
Spot gold touched an intraday high of US$1,775.04, its highest since Sept. 22, before easing to US$1,772.29 by 1207 GMT, according to Thomson Reuters data.
U.S. gold rose to US$1,777.20, also its highest in six and a half weeks, before giving up some gains to trade at US$1,775.60.
“The European issue is still very prominently there. So as long as that remains the case gold is going to remain firm,” said Ross Norman of Sharps Pixley.
“But even aside from that, there is a general fear factor at the moment. Clearly there is a lot of fear in the system and gold is doing what it should do.”
Jim Sinclair’s Commentary
Oh how the barrel has rolled from 2003. There once was a time that gold might be sold to finance the Christmas party.
German Gold Reserves ‘Untouchable’ for EFSF, Roesler Says
By Tony Czuczka and Gabi Thesing – Nov 7, 2011 2:36 AM MT
Germany won’t let its central bank’s gold reserves be used to bolster the power of the rescue fund for indebted euro-area countries, Economy Minister Philipp Roesler said.
“The German gold reserve must be untouchable,” Roesler said in an interview on Germany’s ARD television network today, echoing Chancellor Angela Merkel’s chief spokesman, Steffen Seibert.
Seibert denied a weekend newspaper report that using the Bundesbank’s gold and currency reserves was mooted as part of a debate on boosting the rescue fund, known as the European Financial Stability Facility, at the Group of 20 summit in France.
Germany rejected a proposal by some participants at the Nov. 3-4 meeting in Cannes to use the International Monetary Fund’s special drawing rights to bolster the EFSF, Seibert said in an e-mailed statement on Nov. 5, responding to the report in the Frankfurter Allgemeine Sonntagszeitung newspaper. “At no point in time” were the Bundesbank reserves on the table, he said.
“We are familiar with the plans and we oppose them,” a spokesman for the Frankfurt-based Bundesbank said.