Investors Are Showing They Prefer Physical Gold
August 12, 2011By James O'Dell
Los Angeles, CA. – Morgan Gold - Gold bullion prices continue to consolidate before moving higher and are currently trading at $1,740.90 an ounce with Silver at $38.91 an ounce after CME Group raised Gold margin requirements inducing speculative financial investors to reduce their long positions and roiling precious metals markets in the short term. “However, the longer-term implications of super low interest rates in the U.S., a weak U.S. dollar, a view that central bank holdings in the U.S. dollar are still excessive and ongoing questions over the stability of the financial system will be to drive Gold higher.” says Deutsche Bank in its weekly commodities report.
"The Gold market remains underpinned by the movement to physical Gold," says a note from UBS. "We have also observed among existing and indeed new clients this week, a growing preference towards Allocated Gold instead of metal account/unallocated Gold...the move to real assets such as Gold in physical form signifies the heightened state of risk aversion at present."
The Securities and Exchange Commission (SEC) has reportedly begun a preliminary probe of potential insider trading at Standard & Poor's. The SEC has asked the rating agency to disclose a list of employees who were aware of S&P's decision to downgrade U.S. debt before it was announced publicly last week. Why the probe? The Credit Rating Agency Reform Act of 2006 states that a rating agency can lose its license if it leaks information prior to disclosing a move publicly.
In the eurozone, Regulators in France, Italy, Spain and Belgium banned the short selling of financial stocks on Thursday and the ban will be enforced for the next 15 days. Meanwhile, European industrial production reportedly slipped in June, with year-on-year growth dropping to 2.9 percent, down from 4.4 percent the previous month, while France’s economy stalled completely in the second quarter. “The outlook for the second half of the year looks gloomy,” said Nick Kounis, of ABN Amro. “We expect the economy to remain sluggish and there is a considerable risk of recession.”
Don't leave your assets unprotected during these times of economic and geopolitical uncertainty, invest in physical Gold and Silver bullion and protect your wealth in 2011. Widely recognized Gold and Silver bullion coins and bars can be bought and sold quite readily at Morgan Gold and they can be easily stored in a safe-deposit box if needed. Did you know you can add Gold and Silver bullion to your IRA? It's true, and it's a safe and effective way to start investing, just call 1.800.585.1773 and speak to a Gold and Silver investment specialist at Morgan Gold today. Ask about our Sterling Trust Precious Metals IRA.