Gold, silver and platinum are growing steadily

Gold, silver and platinum are growing steadily

Precious metals have increased significantly in recent weeks and several factors have contributed to this. First, there is the worsening of debt problems in Europe and the United States, as well as the growing fear of a second wave of recession in the United States and the fear of inflation in many Asian countries, particularly China.

On Monday, August 22, the price of gold set a new record at $ 1913 an ounce. Platinum was also able to set a new price record in the last three years at $ 1910 an ounce. Silver traded at $ 44 an ounce on Monday, not far from its record price of $ 50.

In addition, many market participants are following closely the news about the intentions of Venezuelan President Hugo Chávez to return to the country the gold reserves of other countries. Chávez plans to return 211 tons of gold to Venezuela, which are now in the vaults of the United States, Canada and Europe, including 99 tons of gold at the Bank of England. Venezuelan Central Bank Governor Nelson Merentes has already sent an official letter to the Bank of England. Such actions by Venezuela add to the already high level of uncertainty in global financial markets.

Other important developments are China’s intention to cut short the purchase of US debt soon, which will lead to a fundamental change in the country’s business model. The Chinese government will pay more attention to stimulating domestic consumption by reducing exports. If China reduces its dependence on export sales due to falling demand in the United States and Europe, China will no longer need to buy large amounts of U.S. debt in the future. This course of events may soon lead to an increase in interest rates in the United States, which will create additional problems for the U.S. government, which is already on dry rations.

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