Obama Victory – The day after the night before
07/11/2012Daniel Fisher
Free & fully insured UK Delivery. Learn more
Secure & flexible payments. Learn more
Buyback Guarantee Learn more
Obama is re-elected for yet another term as President and the US are now stuck with a descending economy for at least the next four years! I’m at a loss for words! Has this really happened? Are we heading for the “fiscal cliff” of higher taxes and spending cuts with a President that thinks that health care is more of a priority than our contaminated economy? The answer is yes! It’s Groundhog Day and central banks better turn on their printing machines because Obama has already indicated another round of monetary easing.
1) As Obama closed in on a “victory”, the Dollar lost significant value and prompted investors and countries alike to trigger a mass sell of the greenback.
2) Given the markets’ understanding that Obama’s plans for the US is catastrophic for the global economy, analysts are expecting inflation to escalate.
3) Since Obama’s win – the value of Gold has jumped 3% with a host of predictions pointing towards further imminent and long term price increases.
4) Further gold price drivers are international crises such as the Israeli/Iran situation, the recent Syria/Turkey border incident and the longer term threat that the Muslim Brotherhood, which now controls Egypt, will seek to extend its influence in the oil-rich countries in the Middle East tinderbox.
5) On the supply side, gold miners are running out of high grade ore, there are problems with labour in South Africa, and both working and capital costs have risen substantially
6) Central banks have now stopped selling their gold and become big buyers.
It’s finally obvious why more and more of the world’s rich are moving their wealth and other valuables away from the economic turmoil in the US and into gold as a safe haven and a hedge against escalating inflation.
Live Gold Spot Price in Sterling. Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Live Silver Spot Price in Sterling. Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.