Finance Ministers from the euro zone’s 17 member nations have converged on the European Union headquarters in Brussels today in a desperate bid to save their currency and to protect the global economy from a debt-induced financial crisis. The ministers were discussing ideas hitherto unthinkable, now being considered in a moment of utter desperation. Among the previously taboo ideas being mentioned today are: countries ceding fiscal sovereignty to a central authority; some sort of elite group of euro nations that would guarantee one another’s loans but require strong fiscal discipline from anyone seeking membership.
Investor Insights: Are Physical Precious Metals Still in Demand?
German Chancellor Angela Merkel reiterated her support today for changes to Europe’s current treaties in order to create a fiscal union. “Our priority is to have the whole of the euro zone to be placed on a stronger treaty basis,” Merkel said today in Berlin. “This is what we have devoted all of our efforts to; this is what I’m concentrating on in all of the talks with my counterparts.” Merkel acknowledged that changing the treaties won’t be an easy task, as not all of the European Union’s 27 member states “are enthusiastic about it.” However, she dismissed reports that said the 17-nation single-currency bloc might go it alone with a swifter treaty between governments.
It was a relatively quiet day for precious metal (NYSEARCA:DBP) investments. The SPDR Gold Shares (NYSEARCA:GLD) edged .23% higher in afternoon trading, while the iShares Silver Trust (NYSEARCA:SLV) fell .86%. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) edged about .40% higher. Silver miner (NYSEARCA:SIL) Endeavour Silver (NYSE:EXK) gained about 1%, while First Majestic (NYSE:AG) increased .40%. Meanwhile, Silver Wheaton (NYSE:SLW) fell more than 2% as Seven Summits Research issues a critical alert for the company.
Jim Rogers (NYSEARCA:RJI) made headlines by saying gold is due for a correction, and should be used as an entry point by investors seeking the precious metal. If gold retreats towards $1,200 per ounce, he would be “extremely excited.” Rogers explained, “I’d probably get more interested at $1,600. At $1,710 or whatever it is today, I’m not buying gold, I’m just watching, and likewise for silver.” Rogers also explained that he still prefers to buy silver, because it is 40% below its all time high, while gold is only 20% of its all time high.
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