Gold remains currency crisis
The worsening debt crisis in the euro zone will continue stoking the risk aversion of investors. Main beneficiary is and remains the gold that is driven by investors continues to be a safe haven. Like this rose in the third. Quarter, the demand for physical gold as an investment year on year by 27 percent and even central banks ask the precious metal as strong as not to since 2002.
Support the price of gold itself receives the part of the derivatives market. Despite a variety of elevations of the collateral security benefits is reinforced again recently speculated on rising gold prices.
Equalize in spite of the extreme price landslide in September due to profit taking as a result of previous gold price rally and the liquidation of investment positions to other losses, gold remains so established his character as an asset class faithfully. This image is also evident when comparing the value of developments in commodity classes. While agricultural commodities have fallen since the beginning of the year, and industrial metals in the trend shown in addition to oil, the precious metals in a stable condition.
There is little evidence that degrade the environment for precious metals in the future. The political environment remains uncertain. In addition, the government bond markets offer an alternative no-inflation and credit-oriented returns.
Particular attention is the gold mining stocks. These have given the continuing strong demand for gold remains strong in the market environment characterized by uncertainty principle, significant catch-up. Because the ratio of the gold price to U.S. gold mining stocks is 8.4 with an extremely high level, well above the long-term average. Obviously mine values are currently considered high in relation to equity risk.
And what happens next week?
In addition to the usual political noise € next week the focus is on the climate summit. The business climate indices, such as the Ifo data for Germany and the purchasing managers' indices for the euro zone are likely, while continuing their downward trend.
In America, both in new orders of durable goods and in consumer spending with a modest growth expected. The Fed will therefore intensify its rate-setting meeting on the discussion of additional quantitative easing further. Halves week:
Stability or not, without the ECB will find it difficult ...
Do you remember in those words with which the comics of Asterix and Obelix have been initiated? I've used it once on the current stability in the euro-crisis discussion:
We are in 2011 AD. Whole euro area is occupied by lots of stability ... All land €? A populated village of indomitable stability Germanic supporters never ceases to provide the stability hostile intrusion resistance. And life is not easy for this stability enemies who garrison the fortified camps of Portugal, Spain, Italy and France are all ...
In fact, in the ailing euro zone countries need to despair as politicians seemingly. Although parachutes spanned negotiated substantial savings plans and even governments are to be replaced as regular for Jogi Löw, the financial markets are like unruly adolescent youth. You say "I need more details," can no longer be fobbed increase with beautiful expressions of intent and even more brazenly, the risk premiums on government bonds. Of course, the EU, the bearer of bad news - for example the rating agencies - such as the outlaw Robin Hood Sheriff of Nottingham earlier. Are ear plugs to plug into your ears and put on blinders, but is not a reasonable solution.