Rosland Capital's Senior Economic Advisor Statement on How the Price of Gold Hit All-Time High

PR Newswire

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NEW YORK, Nov. 12 /PRNewswire/ -- Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital LLC, one of the nation's leading precious metals asset management firms, made the following statement after the price of gold reached an all-time high of $1,109 on Monday, November 9:

"It's good news for gold and gold investors that the yellow metal today reached another all-time high as trading opened today. It's important to take into account the activity in the international marketplace that has led this run and caused a near perfect storm for gold.

"First, came the announcement from the Reserve Bank of India that it had purchased 200 tons of IMF gold, and the additional statement from the Sri Lankan central bank that it had been purchasing gold in the open market during the past few months.

"This was followed mid-week with announcements first from the U.S. Federal Reserve, then from the European Central Bank and the Bank of England, that the industrial world's monetary policies would remain extraordinarily accommodative for an extended period of time.

"Then on Friday came news that October's U.S. unemployment index had jumped four-tenths of a percent to a 26-year high of 10.2 percent, greatly exceeding expectations of a much smaller increase - indicating that the economy is weaker than most had believed.

"Put the news together and it should come as no surprise that gold briefly broke through the $1,100 on Friday - and has shown further strength this morning trading near $1,110 an ounce in Asian, European, and New York markets.

"It is encouraging that key Asian markets have quickly adjusted to higher price levels. A few months ago, with gold in the $970 to $1,000 range, Indian gold demand stalled while scrap supplies from the resale of old gold jewelry surged. Now, Indian demand remains firm and there has, as of yet, been no big reflow of old gold back to the market. And, buying interest is up in other Asian gold-trading centers. It looks like many market participants, particularly in India, but also throughout the region, have reassessed gold's price potential following the Reserve Bank of India's 200-ton purchase.

"Nevertheless, after such an impressive run-up, don't be surprised if gold takes a breather, perhaps selling off a bit on profit taking, and consolidating in a trading range between $1,070 and this week's new all-time high. One thing that could quickly lift gold - at any time - into still-higher territory would be news of another major central bank taking up more of the IMF gold on offer."

For interviews with Jeffrey Nichols, please contact Larry Farnsworth of Crosby-Volmer International Communications at (202) 232-6574 or via email at lfarnsworth@crosbyvolmer.com .

About Rosland Capital

Rosland Capital LLC is a leading precious metal asset firm based in Santa Monica, California and buys, sells, and trades all the popular forms of gold, silver, platinum, palladium and other precious metals. Founded in 2008, Rosland Capital strives to educate the public on the benefits of investing in gold bullion, numismatic gold coins, silver, platinum, palladium, and other precious metals. For more information please visit www.roslandcapital.com .

About Jeffrey Nichols

Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital, has been a leading precious metals economist for over 25 years. His clients have included central banks, mining companies, national mints, investment funds, trading firms, jewelry manufacturers and others with an interest in precious metals markets.

CONTACT: Larry Farnsworth (202) 232-6574 lfarnsworth@crosbyvolmer.com SOURCE Rosland Capital LLC

2009-11-12 10:44:00