Precious metals trading was mixed as the European Central Bank contemplated cutting interest rates to 0.75 percent to spur development.
Gold basically even, up $1.51 to $1,616.76 and silver is up a nickel to $28.20, lowering the silver/gold ratio to 57.3.
Lower European interest rates are a mixed blessing for gold and silver as lower rates will almost certainly spur more investors to buy dollars. On the flip side the inevitable currency dilution from low interest rates will benefit precious metals. Overall more dilution of the euro should be a net positive for gold.
Another factor that should favor gold and silver investment is the growing realization that the stock market is a rigged game, run for the benefit of a few big companies at the top. We’ve been talking about that for a long time but I was shocked to see the same conclusions being reached in the mainstream financial media. That would have been a timely conclusion in 2005, better late than never I guess.