Auguries — Keynes Redux
January 12, 2012
By Kevin Michael Grace

Gold was up (at press time) $25.90 (+1.6%) for the week to $1,649.30, and silver was up
.95 (+3.2%) to $30.22. Reuters attributed gold’s “one-month high” to “comments by the president of the European Central Bank on cheap money [which] stabiliz[ed] the region’s banking system [and] extended the metal’s gain to a third consecutive day.”

That’s one point of view. The same Reuters story quoted Zachary Oxman of futures brokerage TrendMax, “Right now, gold is operating on its own merit as a store of value. The problems in the Eurozone are still there, and I believe the debt issues in Greece and Italy are not going to be alleviated at all.”

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