Daily Market Update 2/8/11

Up Up and Away, a little earlier than I had anticipated but all four precious metals broke out today and are off and running.  Gold closed at $1,363, up $12; Silver closed at $30.30, up $.90; and Platinum and Palladium were each up $15. We are seeing heavy demand for precious metals primarily from Asia, and with renewed concerns about Chinese inflation, I believe that demand is likely to increase.  

Important News:

J.P. Morgan Chase said on Monday that it would accept physical gold as collateral with its counterparties as a growing number of clients look to use bullion as a hedge against inflation.
 
Since the United States went off the gold standard in the 1930’s, most U.S. banks and the Federal Reserve have treated gold like the ugly Step-sister. For almost 80 years U.S. banks could not understand why anyone would invest their money into this "un-productive asset class".  Now, with J.P. Morgan Chase willing to accept Gold as loan collateral, our financial institution’s doors are slowly opening for gold again.

This could be the first major step to bringing back the gold standard.  Are you listening Congressman Ron Paul?

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