Goldletter INTERNATIONAL
the international independent information and advice bulletin for gold and related investments
source: www.kitco.com
click on the chart for the current gold price
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EUROPEAN
GOLD FORUM |
- Top-20 gold producers - June 30, 2010
- Rare Earths and Lithium companies overview - June 30, 2010
- GOLD
SHORT-LIST_Report_- June 30, 2010
including updated information on featured companies - Crisis resistance of the dollar - June 30, 2010
- Measuring the New Gold Bull Market - June 30, 2010
- Overview metal and oil prices - June 30, 2010
- Gold doesn´t run its own course June 30, 2010
- Course of the dollar and major currrencies - June 30, 2010
- Overviews LATIN AMERICA gold and silver - March 31, 2010
- GOLD SHORT-LIST_Report_- March 31, 2010
- Worldwide nonferrous exploration budgets - Update March 2010
- Overview gold companies LATIN AMERICA - March 1, 2010
- Goldletter International - February 2010
- Goldletter Special Report AFRICA - January 2010
ACTUAL GOLD NEWS
Please, be advised that you can have access to my latest updated overviews as per the June 30, 2010 on recent developments on the international commodity and currency markets , with the emphasis on their impact on the gold and dollar price, as well as my monthly updated short-list of gold investment recommendations as per the June 30, 2010 (see above).
As already predicted more than a year ago, the financial turbulence in the Euro zone has moved the dollar up further against the euro, strengthening its position as the world's key currency.
At the same time, increasing attention is being paid to the strong undervaluation of the Chinese Yuan against the dollar and euro, demonstrated by China 's ongoing trade balance surpluses having pushed the country's monetary reserves to more than $ 2,500 billion and still rising.
Although the Yuan has been depegged officially from the dollar recently, the impact will be very limited and will not disturb China 's economic growth and more specifically its booming export.
Even in the case of an annual appreciation of the Yuan by up to 5%, the negative impact will be compensated for by investment income and value appreciation derived from China 's monetary reserves, including from its huge investments in US treasury bonds. These showed a market performance of 14%, which is comparable with the performance of gold.
As part of a new economic world order, with economic growth and wealth shifting from the western world to Asia , led by China , gold's monetary function is further deteriorating as is demonstrated by gold having lost its direct correlation to the dollar as the world's key currency.
With the gold price having increased by 13%, the dollar strengthened comparably as a result of the Euro crisis.
Striking is the fall of base metal prices in the first half of 2010, which expresses the fear of a double dip in economic growth in the western world and China's growth to slow down from above 10% to 8%.
However, history teaches that strong intermediate corrections of metal and mineral prices, having an economic function, offer attractive buying momentums.
Consequently, I expect the commodity markets to recover strongly in the second half of the year, with gold not having an economic value, to lag behind. Also, in my view, prices of other precious metals, including silver, platinum and palladium, offer more investment potential.
I remain bullish on the gold equity markets however, which have lagged behind significantly.
In conslusion, in the second half of 2010, in my view, investors should not buy physical gold but focus their attention to the depressed qold equity markets.
Marino
G. Pieterse
Goldletter International
www.goldletterint.com
info@goldletterint.com
- GOLD SHORT-LIST_Report_- Ultimo 2009
- Goldprice Interest Yields Us-Europe-3 months - 10 year-Ultimo 2009
- Overview metal and oil prices - Ultimo 2009
- Course_of the_dollar_- Ultimo 2009
- Crisis_resistance of the dollar - Ultimo 2009
- Gold doesn't run its own course - Ultimo 2009
- Measuring the gold bull market - Ultimo 2009
- TOP-10
Gold producers - Ultimo 2009
- GOLD SHORT-LIST_Report_- October 10, 2009
- Overview metal and oil prices - September 30, 2009
- Goldletter Special Report Timmins Camp - September 2009 Update
- Goldletter
International - September 2009
including Short-list of gold investment recommendations - Overview World Gold Supply and Demand
- Goldletter Special Report MONGOLIA - September 2009 Update
- Goldletter International - August 2009
- Goldletter Special Report LATIN AMERICA - July 2009
- Goldletter Special Report MONGOLIA - July 2009 Update
- Goldletter Gold Region Overviews as per June 30, 2009
- Overview metal and energy prices - June 30, 2009
- Toronto Stock Exchange TSX - recognised global leader in mining
- Goldletter International - February 2009
- Overview metal and energy prices - year-end 2008









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