Reexamining The Gap Between Gold And Platinum

Having passed the 'easy-do-nothing' bill that created a 5% uplift in US equities, D.C. have left the most difficult set of issues for last: entitlement reform, which Republicans have said they will insist upon in return for raising the debt limit, and tax reform, which the President has said he will insist on in return for entitlement reform. The upshot is that reaching an agreement on the next debt limit increase could be at least as difficult as the last increase in August 2011.

Just breaking from Fitch... A new warning that a debt ceiling failure will likely cause a ratings review. We've posted the full letter bellow the dotted line. But the key paragraph is here.

LONDON — Gold dropped as much as 6.3% on Monday to below US$1,400 per ounce for the first time since March 2011 as the market’s downward momentum gained speed after more than four months of investor selling. Investors ditched gold along with other commodities from oil to copper after a less-than-forecast growth in China’s gross domestic product in the first quarter stoked doubts about the health of the global economy.

By Lior Cohen:Gold and silver prices increased during most of last week. Will the recent rally of precious metals prices continue this week?

Gene Chan submits:I have a short position on gold through GLD and a long position on silver through SLV. Each share of GLD is backed by about 1/10th of an ounce of gold, and each share of SLV represents roughly 1 ounce of silver.

I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

Submitted by Chris Martenson of Peak Prosperity, I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

Ananthan Thangavel submits:As usual, precious metals markets have received plenty of attention recently. While many market prognosticators are calling for an end to the gold “bubble,” we believe that we are still in the early stages of the bull market in gold due to overwhelmingly bullish fundamentals. The following chart shows the price of gold in yellow against the size of the Fed’s balance sheet in red since the year 2000. The chart has been normalized for percentage.