Daily Market Update 4/19/11

GOLD
Gold closed up $1.50 in very active trading closing at $1,497.60.  The global markets are showing renewed flight-to-safety demand with Gold setting a new all-time peak of $1,500.80.  Both Gold and Silver were hit numerous times in overnight Asian and European markets by profit takers. However, the buying demand continues to come back and absorb any selling. Front page news articles are talking about gold breaking the $1,500 barrier and quoting experts as predicting the price is heading higher.

GoldCore is stating that the current price for gold is still $900 below the inflation- adjusted level, and that gold may reach as much as $2,400 in the coming years.

SILVER
Silver closed at $43.73, up another $.45 cents as concerns increase over the value of the dollar and worldwide inflation. Silver continues to set higher prices based on physical shortages of the metal and global inflation concerns.

Inflation picked up substantially in the 17-nation euro region in February, the European Union’s statistics office said last week. U.S. wholesale costs rose 5.8% in March compared with a year earlier, and the government said that the cost of living rose for a ninth month in a row.

BRICS Meeting in China over the Weekend

The elimination of the dollar and the move to a gold backed reserve currency was the key focus at the BRICS nation conference (Brazil, Russia, India, China, and South Africa) that was held in China last weekend. The key to understanding the summit may be found in the joint statement, which refers to "the inadequacies and deficiencies of the existing international monetary and financial system...." Without question, this statement is about eliminating the U.S. dollar as the global reserve currency and replacing it with a basket of currencies and gold.