Gold was down for the week

fat cat, banks, gold, cyprus

A fat cat: no ideology, only hunger.

Gold was down (at press time) $9.30 (-0.6%) for the week to $1,596.80, and silver was down $0.38 (-1.3%) to $28.32. According to Reuters, “Gold fell on Thursday and closed the first three months of 2013 with a quarterly decline of nearly 5%, as fears about Europe waned; Wall Street surged; and strong US economic data cut demand for a safe haven.”

The power of autosuggestion. Repeat after Reuters—Every day, in every way, the economy’s getting better and better. How much so? Revised 4Q GDP was +0.37%. Impressive. And “initial jobless claims rose last week”—uh oh—but “not enough to suggest the labour market recovery was losing steam.” Phew. And these green shoots were enough to push the S&P 500 to an alltime high.

Meanwhile, “Cypriots queued calmly on Thursday to withdraw limited amounts of cash, as the island’s banks reopened for the first time in two weeks with no sign of a run on deposits as many had feared.” But a run on deposits is rather difficult when depositors are limited to €300 per day (about C$491). And of course we don’t know how much money was removed from Cyprus by those in the know before the “rescue” took effect.

As for the fear factor, Nick Squires of the Daily Telegraph reported from Nicosia March 28, “There are deep fears that the country of 850,000 people is about to plunge into a deep recession, as people who have lost their savings drastically cut back on spending; the financial sector shrinks; and businesses shed thousands of jobs.”


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