GOLD SLOWLY RECOVERS; DO BRITISH BANKS HAVE ADEQUATE CAPITAL PROTECTION?
Gold is slowly recovering today after yesterday's profit taking took the metal’s price down. The price of Gold has increased more than 10 percent for the year so far as investors have flocked to the yellow metal as a safe haven. Jeff Kilburg, CEO of Killir Kapital Management believes the Federal Reserve is adding value to Gold as they continue to print money. Kilburg said, “The theoretical value of Gold when you see that the monetary base grow by another 18.4 percent, $735 billion, it puts Gold at $2,000.”
The Bank of England announced today that British banks may not have sufficient funds to protect themselves against financial market mishaps. Next year the BoE’s Financial Policy Committee will have power over British bank regulation and have already encouraged the present regulator to re-evaluate the banks’ capital to accurately represent the risk of bad loans and examine fines for misconduct. “Progress by banks in raising capital has slowed and investor confidence remains low. … The Financial Services Authority should ensure that firms either raise capital or take steps to restructure their business and balance sheets in ways that do not hinder lending to the real economy,” the BoE said in its half-yearly Financial Stability Report.
At 5:15 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,727.70, Up $8.90.
- Silver, $34.31, Up $0.56.
- Platinum, $1,616.00, Up $3.30.
- Palladium, $685.90, Up $10.70.
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