Los Angeles – Gold bullion prices finished the week down by a mere 0.08 percent at $1,428.10 an ounce while the price of Silver finished the week higher by 1.26 percent at $37.77 an ounce and the Gold/Silver ratio fell to 37.81, its lowest in over 13 years, as Silver continues to grow more expensive relative to Gold.
Over 40 foreign ministers and representatives met last week in London and agreed to continue the NATO-led air strikes against Muammar Gaddafi’s Libyan forces until Gaddafi complies with the current U.N. resolution calling for an end to all violence against civilians. In Syria, President Bashar al-Assad mobilized tens of thousands of Syrians in mass pro-regime rallies across the country and gave his first speech since the Middle East unrest began in which he addressed “the internal issues and the latest occurrences,” in his country.
The Syrian president also accepted the resignation of his government while the United States is offering free flights out of Syria to families of U.S. government employees, reported by the State Department on Sunday, as violence in the Middle East boosts precious metals’ safe-haven appeal.
In Japan, Tokyo Electric Power Co. has suffered one setback after another in its efforts to repair the damage to the Fukushima Daiichi nuclear facility. The operator of the damaged power plant said over the weekend that it had uncovered one source of radioactive water leaking into the ocean but its efforts to stop the leak have so far been unsuccessful. As concerns continue to mount over radiation leaking from the plant, several governments have announced steps to monitor and screen ships and aircraft arriving from Japan.
Last week, Chinese authorities turned away a Japanese container ship after detecting elevated levels of radiation onboard. In the U.S., the Environmental Protection Agency (EPA) announced last week after finding low levels of radiation in milk, in two different areas on the West Coast that it will be increasing its monitoring of radiation levels in milk, precipitation, drinking water, and other outlets.
Congressman Ron Paul [R-TX] has just introduced the Free Competition in Currency Act of 2011, H.R. 1098, in the United States House of Representatives. With this legislation, Congressman Paul is seeking to end all taxes charged by federal, state and local governments on Gold and Silver coins and bullion. The bill would eliminate capital gains taxes on Gold and Silver coins as well as sales taxes charged by state and local governments on all coin and bullion transactions. Current “legal tender” laws, which Paul considers unconstitutional, would also be repealed by passage of H.R. 1098.
Geopolitical unrest, rising U.S. debt, printing money, and terrorist threats, tend to boost the demand and the price for Gold and other precious metals. One of the most devastating outcomes of printing money is ending up with possible Hyperinflation. Hyperinflation is an inflation that is out of control. During Hyperinflation, prices rise and currencies drop in value rapidly.