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The Coin Analyst: Gold’s New Role in the Global Monetary System and the Euro Zone Crisis

The Coin Analyst: Gold’s New Role in the Global Monetary System and the Euro Zone Crisis

Cross-posted to Charleston Voice, 06.20.12

Don't for an instant poo-poo the coin collector. They have all the hands-on, boots-on-the-ground experience you or central bankers will never have!

(We are still puzzled why the German people would entertain such a gold bond scheme with members retaining custody over their own collateralized gold. Germany can't even get accountability or their sovereign gold reserves re-patriated out of the NY Fed !.....as far as we know). How's it go..."Fool me once, shame on me...fool me twice"...??? I dunno ask George Bush.
by Louis Golino for CoinWeek…..

Knowledge is power when it comes to any kind of investing. There is probably no area where that is more true than precious metals, where being savvy can make all the difference between success and failure.

But being knowledgeable about the precious metal markets is not simply a matter of understanding market fundamentals and related issues. It also increasingly means that investors need to study geopolitics and macro-economic issues too, even if the connection to metals is not always immediately apparent.

>Gold investors are well advised to follow how Europe’s financial crisis is evolving especially closely because it will be a critical determinant of the price of gold in the coming months and years while euro zone countries seek to address their problems.

In part that is because of the links between the euro-dollar exchange rate and gold that I have discussed many times in the past year. When the problems deteriorate in Europe, investors get worried about protecting their assets and seek refuge in the dollar and dollar assets, which drives gold down, and when things are going better, they feel more comfortable investing in gold.

Read more: The Coin Analyst: Gold’s New Role in the Global Monetary System and the Euro Zone Crisis