Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged slightly higher as concerns over debt in Europe and economic growth in the U.S. bolstered the dollar. The IMF warned today that eurozone banks may be forced to liquidate up to $4.5 trillion in assets next year if the region's governments fail to address their fiscal crises. Without the massive deleveraging of EU banks, peripheral nations like Spain, Italy, Greece, and Ireland will see much higher credit costs and much lower growth rates, according to the IMF. The Fed's Beige Book was released today showing growth rates virtually unchanged since August, with two of the twelve Fed regions�Kansas City and New York�in decline. The Dow dropped another 100 points on risk-aversion while the dollar rallied over 80 on the index chart for the first time in a month. That gold inched up alongside a rising dollar indicates good support at current prices. Silver gained 0.4% while sister metals platinum and palladium fell 1% and 1.3%, respectively.

At the Comex close: December gold added 10 cents to $1,765.10; December silver gained 12 cents to $34.11; January platinum dropped $16.80 to $1,678.50; and December palladium lost $8.30, to $649.90 an ounce..

Bloomberg published its "Riskless Return Rankings" of assets with the best risk-adjusted returns over the past five years. As measured by GLD, the largest gold-backed ETF, gold bullion ranked first, providing a total return of 134% with the third-lowest volatility among all assets. Inflation-Protected Treasuries, or TIPs, came in second. U.S. gold coin sales climbed to 68,500 ounces last month, the most since January, as investors flock to gold as a unique monetary asset that keeps pace with inflation. Credit Suisse is forecasting gold prices above $1,800 in three months; Newmont Mining Corp. foresees gold above $2,500 within three years.