Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.7% in its third straight losing session as reports of eurozone recovery dulled safe-haven sentiment. Business confidence rose in Germany for the third consecutive month, indicating that Europe�s largest economy is already rebounding from its slowdown during the last quarter of 2012. In addition, the ECB said today that banks will repay nearly $185 billion in emergency loans, substantially more than forecast, signaling that the eurozone debt crisis is abating.

Traders liquidated safe-haven positions in gold and silver in favor of risk-assets like equities, pushing the Dow and Global Dow higher by 0.4% and 0.6%, respectively. Gold finished the week with a 1.7% loss. Silver, which is usually more volatile, fell 1.7% on the day and 2.2% on the week. Sister metals platinum and palladium, strongly tied to industrial demand, rose on prospects for higher global growth. Platinum added 0.4% for the day and 1% for the week; palladium picked up 1.4% for the day and 2% for the week. Both PMGs are used widely in the manufacture of automobiles.

At the Comex close: February gold slipped $11.90 to $1,658; March silver dropped 50 cents to $31.23; April platinum picked up $7 to $1,690.; and March palladium added $10.30, to $737 an ounce.

Growing investment demand for silver in China is expected to drive global silver prices in coming years, according to Marketwatch. China�s citizens are flocking to silver to secure their growing wealth and hedge against inflation. Chinese purchases of physical silver for investment nearly doubled from 2010 to 2011, rising from 9.8 million ounces to 17 million, and 2012 is expected to have been even stronger.

In a report issued last month, global metals consultancy Thomson Reuters GFMS also forecast investment demand for silver in China to grow �robustly over the short to medium term, as a wider population base gains access to silver bars and coins.� Globally, demand for silver as an alternative currency is on the rise because it�s undervalued compared to gold and is in limited supply. Like gold, it is considered a long-term store of value with no counter-party risk of default, making it a solid hedge against inflation and paper currencies. So far this year, silver has substantially outperformed gold by gaining 3.6% while gold has lost 1.1%.