Closing Gold & Silver Market Report, 8/17/2012
GLOBAL INVESTOR SOROS SELLS STOCKS, BUYS GOLD
George Soros, a famous global investor, sold his shares in American financial stocks and used the proceeds to buy Gold. It is worth noting that he did so at a time when the Dow crossed 13,000, its highest level since April 2008. Soros also is noted for his close ties with the Obama administration. When a person of his wealth and connections pulls out of United States financial stocks to buy Gold, it does not go unnoticed.
London based clearing house CME Clearing Europe has followed the lead set by CME Clearing in the United States in October 2009 and is now accepting Gold as collateral to cover margin requirements. This is a further indication that Gold is now viewed as a currency and not a commodity. CME Clearing Europe was launched in May 2011.
A World Gold Council report this week indicated that central banks bought Gold at a record pace in the second quarter of 2012. This trend of moving away from paper currencies to Gold began in 2010. In 2010, central banks became net buyers of Gold for the first time in decades; however, there were still some countries that were net sellers. In 2011, buying increased, and there were no central banks that sold more Gold than they purchased. In 2012, central bank purchases have continued to climb. Investors should draw their own conclusions on why banks are moving away from paper currency and what this ultimately will mean for Gold prices.
At 5 p.m. (EDT), the APMEX Precious Metals prices were:
- Gold, $1,615.90, Down $1.80.
- Silver, $28.12, Down $0.20.
- Platinum, $1,473.70, Up $37.50.
- Palladium, $608.20, Up $23.30.
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