November 15, 2010, Los Angeles – Gold bullion prices slid to $1,368.60 an ounce on Friday as Silver followed Gold lower to $26.02 per ounce.
The week began with Robert Zoellick, World Bank President, creating a stir on Monday when he called for a “modified global Gold standard.”
Zoellick suggested, “The world’s monetary system should consider employing Gold as an international reference point of market expectations about inflation, deflation and future currency values.” Despite Zoellick’s suggestions, it is unlikely the world would return to the Gold Standard, say economists.
The Gold price surged to a new all-time high of $1,424 an ounce before settling at $1,393 an ounce on Tuesday as Silver hit a new 30 year high of $29.36 early in the day before closing at $26.92 an ounce.
After another record setting high on Tuesday, the year-to-date gain in the price of Gold is nearly 30 percent.
Pricing the year-to-date move in the S&P 500 in terms of Gold has the S&P 500 market down 16 percent for 2010 and it has fallen 84 percent in terms of Gold, since its March 2000 highs. On Wednesday the Fed announced that it will start the second round of quantitative easing (QE2) when it purchases $105 billion in U.S. Treasuries over the next month, between November 12 and December 9.
The Fed plans to conduct 18 open market operations in that time period which will serve as the first round of the $600 billion QE2 plan that was announced almost two weeks ago.
Additionally, the central bank will be reinvesting between $250 and $300 billion of the proceeds received from maturing mortgage-backed securities and agency debt into U.S. Treasuries.
The G-20 nations gathered in Seoul, South Korea, on Thursday and Friday to discuss global economic issues and to try to ease tensions over the threat of currency wars disrupting the global recovery.
Group of 20 nations’ officials in Seoul worked late into the night to come up with compromise language their leaders could endorse that would tackle imbalances in currencies and trade that have stoked protectionism.
President Obama said of the Chinese yuan, “It is undervalued,” while he spoke in Seoul following the conclusion of the G20 meeting, and continued, “And China spends enormous amounts of money intervening in the market to keep it undervalued.” That sums up what happened at the highly anticipated G-20 meeting between the nations in their effort to curb “currency wars,” not much was resolved. Invest in Gold and Silver bullion and coins today.
Convert a portion of your assets into physical Gold and Silver and hedge against the coming dollar devaluation.