Ignoring the recent surge in energy and other commodity prices the ECB policymakers chose today the way of remaining on the fence in the face of mounting global imbalances. The governing council
decided unanimously to leave the leading overnight rate unchanged at 2.25% after the hike by a quarter percentage point in December.
While ECB president Jean-Claude Trichet stressed the point that Europe's interest rate setting body remains increasingly vigilant he injected further confusioning statements in the webcasted press conference (where issues like exploding money supply and the sudden slowdown in gold sales were left unquationed.) When asked by an Italian journalist whether he sees interest rates at an appropriate level he answered, "I did not say that," but never went as far as to say they were inappropriate. This leaves room for two kinds of speculation. Either the
If It's Got To Do With Gold - Buy It! at 2006-03-22 12:06:52
Not much time today as I am busy with an ebay garage sale (turns things that would otherwise go into the dumpster into hard cash.)
But looking at the weak stock market and the even weaker mining shares I feel tempted to load up with more gold (and silver) miners.
The Amex Gold Bugs Index today experiences its first correction in a while after it rocketed virtually uninterrupted from 250 to 348 points. Today it is down 3.6% at the time of writing although gold holds steady above $570.
If you need a couple of reasons why to buy anything related to gold I strongly recommend you download
Chevreux' 56-page report on gold (pdf) which is a thrilling read and also the first time that a major (French) bank recommends to start hoarding gold as they see a remonetization of the yellow metal (hat tip to
Mover Mike.)
As I have
Disruption at 2006-03-22 12:06:52
This blog will be back on February 20.
