Gold News from Morgan Gold

By James O'Dell

February 20, 2012, Los Angeles – Gold bullion Prices eased 0.23 percent or $4.00 to close at $1,723.30 an ounce on Friday, after the payroll tax cut bill was passed quickly by Congress before a week long recess this week, and on speculation that China may ease its monetary policy. The Silver price slipped 0.57 percent or $0.19 to close at $33.26 an ounce, while the Gold/Silver ratio, the number of ounces of Silver it takes to buy one ounce of Gold, rose to 51.81 as Silver under-performed Gold.

China's Central Bank did, in fact, decide to cut its reserve requirements over the weekend, reducing by half a percentage point the proportion of cash that banks must set aside beginning Feb. 24. Economists had been predicting a cut for several weeks with most predicting it would come before China's Lunar New Year holiday in January. “We expect further easing measures from Beijing in the coming months, such as bigger new loans and at least two additional 50 basis point reserve-ratio cuts,” economist Qu Hongbin, of HSBC, said on Saturday. China's easing monetary policy will further boost investor sentiment in Gold as a hedge against inflation.

 Meanwhile, Iran announced that it has halted all shipments of crude oil to France and the U.K., on its oil ministry’s news website, Shana, over the weekend. The cutoff comes ahead of a European Union (EU) ban on Iranian crude oil purchases scheduled to start in July, that were initiated to pressure Iran to stop its nuclear enrichment program. Officials from the International Atomic Energy Agency (IAEA) will begin a second round of talks in Iran on Monday in an effort to defuse growing concerns that the country’s nuclear program could lead to military intervention.

In the eurozone, finance ministers are expected to reach agreement Monday on Greece's second bailout package, according to a spokesperson for German Chancellor Merkel. Treasury Secretary Geithner voiced his support of the economic reforms already agreed to, on Sunday, calling the agreement a "very strong and very difficult package of reforms, deserving of support of the international community and the IMF." Greece must gain approval or face certain bankruptcy and possible exit from the euro currency. 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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