Closing Gold Silver Market Report - 4/20/2011 By Peter LaTona |
April 20, 2011
GOLD & SILVER MAINTAIN RECORD PACE –
Gold maintained record breaking prices above $1500 and silver
soared to new 31 year highs, staying above $45 per oz. The
US dollar continued to decline, concerns about the US and
European economies continue to flare and rising Asian inflation
is boosting Asian demand. All of these factors boost the
safe haven appeal of gold and silver. Gold has been acting
as a currency in its own right, and that is why we are up
at $1,500," said Simon Weeks, head of precious metals
at the Bank of Nova Scotia.
Conversations still abound, as to why the
University of Texas has taken a 5% position in gold and
have taken this position in the actual physical metal and
not an ETF. Most institutions carry a 1% gold allocation
in “paper products”. "The role gold plays
in our portfolio is as a hedge against currencies. The concern
is that we have access monetary and fiscal stimulus,"
Zimmerman said. Should other institutions begin to follow
suit and raise there allocations with the addition of physical
gold, there is no doubt prices will be dramatically affected.
This action by UT clearly indicates they are taking a long
term position.