Daily News

April 7, 2010 - Gold investments turned the table on silver investments this time by making a relatively bigger splash. As of about 11:00 a.m. HK time, gold posted $1136.30 Assuming that gold maintains the figures until the end of trading day, the increase will be a creditable $10.20 or 0.91 percent.

Silver, on the other hand, seemed stranded at $18 as of about 11:00 a.m. HK time while trading was still about halfway. The increase is $0.11 higher than its performance two days ago.

The economic scenario had dramatically changed when business resumed after the holidays. The Euro could not check it decline against the major currencies which are its trading counterparts. It dropped 0.6 percent against the dollar to bring its total loss to 6.4 percent so far in 2010. The Euro also upped its 2010 deficit against the yen to 5.7 percent. It was the Greek crisis mainly responsible for the decline of the Euro. It cannot be ascertained when help would come to the aid of beleaguered Greece. But in the meantime that the crisis remains unresolved, the Euro will weaken and the dollar will strengthen.

It was a strong dollar that met gold and silver after the holidays. Certainly the strong dollar curbed the rise of gold and silver. Profit-taking too played a part. But one analyst did not lose his optimism. The precious metals would consolidate, he said.

Investment opportunities had expanded as a result of the improving US economy. Equities had become popular, attracting part of investor’s funds. Stocks were also on the rise, now looking attractive as areas of investments. Interest rates had remained low, untouched by the Federal Reserve.

Time to look for a better place for money. There’s gold and silver.

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info