Gold News from Morgan Gold

By James O'Dell

January 26, 2012, Los Angeles – The Gold price surged 2.65 percent or $44.20 to close at $1,709.80 an ounce on Wednesday, after the Fed announced that interest rates would remain at current, near zero levels, until late 2014, a year longer than its previous target, while at the same time, committing to hold inflation at a target rate of just 2 percent. The Silver price jumped 3.75 percent or $1.20 to close at $33.20 an ounce while the Gold/Silver ratio slipped to 51.50 as Silver outperformed Gold.

Fed Chairman Bernanke achieved a long-term objective on Wednesday after setting a definite target rate for inflation. “An important aspect of policy transparency is clarity about policy objectives,” said the Fed Chairman in the press conference following the FOMC meeting. “Clearly communicating to the public this 2 percent goal for inflation over the longer run should help foster price stability and moderate long-term interest rates.”

Meanwhile, Treasury Secretary Geithner, the last remaining member of President Obama’s original economic team, said that he doesn’t expect to be asked by the president to continue in office, should the president win re-election.“He’s not going to ask me to stay on, I’m pretty confident,” said Geithner on Bloomberg Television in Charlotte, North Carolina, on Tuesday. “I’m confident he’ll be president. But I’m also confident he’s going to have the privilege of having another Secretary of the Treasury.”

 In the eurozone, the reason negotiations are taking so long on the Greek debt swap deal, is that private bondholders are now being asked to accept a loss of at least 69 percent on the net-present value of the bonds. This is after agreeing, just three months ago, to a 50 percent cut in the face value of the 200 billion euros of Greek debt through a voluntary swap for new securities. Baudouin Prot, Chairman of BNP Paribas SA, said the bond-holders offer of 69 percent is the “maximum acceptable for a voluntary deal.”

The new 30-year bonds were expected to carry a coupon value of around 4.25 percent, although finance ministers said they will push Greece’s private investors to accept coupons valued below 3.5 percent for debt serviced until 2020 and below 4 percent over the 30 year term of the next package. 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 2012.

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 physical Gold to your IRA?  Hear Edmund C. Moy, former director of the U.S. Mint, now representing Morgan Gold, speak on Gold and your retirement. Call 1.800.585.1773 and let our team at Morgan Gold help you diversify your portfolio today. Ask about our new Self Directed IRA. 

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