The dollar had a little bit of a kick today, but no one mentioned that to gold or silver as they broke to new highs in spite some investors taking profits.
This is great news for metals investors as it seems even forex money is coming to gold. Fiat currencies can not be trusted with so much turmoil amongst the worlds economic powers. The G-20 summit starts tomorrow in Seoul, South Korea. All eyes and ears will be on the group of 20 from the leading economic countries around the globe. Preparations were made for whatever decisions may come out of this meeting Friday, when the IMF board announced it’s reform of power, bringing China to number three, and delegating additional say to India, Brazil, Germany and others. European influence diminished to make way for China and the other emerging markets.
News out of Europe today was not good. Basically saying that the bailouts for Ireland and others may not be sustainable. This had to have been seen, and the cause for Europe to lose the influence it had on the IMF.
Gold went past $1400/oz today, Palladium surpasses $700 and Silver broke through $27 like it was a resistance level made of hay. With the dollar and gold going up together again, it’s looking like gold is trading as a currency now, rather than a commodity, no official statement on that, just our opinion.
Chinese Vice Foreign Minister Cui Tiankai made the following comment about the IMF reforms;
“This is not the end, not even the beginning of the end, but the end of the beginning,”
He went on to say that he looks forward to additional reforms in the IMF, sharing the opinion of other countries that the way the quota is calculated needs to be reformed.
Even though Robert Zoellick’s(head of the World Bank) comment about considering a modified gold standard in a Financial Times interview has been dismissed, you have to wonder if China’s opinion on the IMF reforms ” this is the end of the beginning” is the beginning of the end of US dollar dominance.
News Articles Of Interest;