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“People don’t trust the dollar; they don’t trust the euro, so the only way to go is to look at alternatives such as gold. It’s a safe haven”. This view expressed by Bernard Sim, of MKS Finance in Geneva, is a reflection of the views of many gold analysts.
There is a lot to be said of his sentiments. As the dollar fell against the euro yesterday, gold prices saw a slight rise. The euro zone situation is still a constant presence and if Greece fails to put in place the suggested objectives, the euro will still remain unstable.
The big rumour circulating the market at present is that China will acquire over 191m tonnes of gold from the IMF gold sale. If this rumour turns out to have substance then China would emerge as a powerful force in the gold market. It is suggested that gold prices would initially take a dip but would continue to rise, making now a crucial time to buy gold. |