gold and silver to follow EURO?...article

[Peter]

For many months now, gold and silver have not simply acted as a counter to the dollar but linked on a day-to-day basis with the euro. It's reasonable, one would think, for them to have that relationship because the euro is the second most important currency in the world. But when the euro itself has problems with its value then the relationship must surely become suspect?

What we've seen lately is gold and silver prices moving with (and often faster, both ways) than the euro, but the link remain solid. With concern for the future gold and silver prices in mind, it's time to examine this relationship to see where it's taking these precious metals. With the Eurozone crisis moving to potential 'runs' on Greek and Spanish banks, the future of the euro is now on the line. A look at a precipitous fall in the euro and the potential for gold and silver to follow is warranted. Investors should be prepared for very volatile and surprising gold and silver price moves.
More...
http://www.kitco.com/ind/AuthenticMoney/20120528.html
.............
my comment..doesn't seem to answer the question but useful info.

 

[TreasureHunter]

Interesting pattern, link with the euro...
Generally if the euro goes down, the dollar goes up, so naturally the precious metals will sink as well. I think it's rather a triangle: dollar - euro - precious metals...

I've been saying this for quite some time and no-one seems to notice: the dollar will strengthen as the euro collapses and that will implicate cheaper precious metal prices.

You will want to have lots of dollars then, when this happens. You will want to buy precious metals when they crash.
I see a potential crash of gold and silver, one that will happen around the time of the euro's crash.

But then again, there's another factor: will the masses in Europe turn to physical gold as the euro loses its value? If so, than the scenario described above won't happen... so, the precious metals could in fact get more expensive, if the masses losing their wealth in euros will turn to gold and silver (if they turn to gold and silver).

Some say the euro will crash, the dollar will crash and something new will come. Perhaps that new currency will be common currency in the Western World?
It's likely that it will be backed by gold. Even the IMF owns huge amounts of gold, so I don't see why not return to the gold standard...

 

[Dogmatix]

+1 for thread resurrection (seriously), I wish more people did this, especially myself

As for the rest - there is so much uncertainty, clearly.

This is why it is easier to buy PMs and hope that it works out in AUD. Playing the currency markets and PMs off each other takes balls of steel IMO.

 

[AngloSaxon]

Interesting pattern, link with the euro...
Generally if the euro goes down, the dollar goes up, so naturally the precious metals will sink as well. I think it's rather a triangle: dollar - euro - precious metals...

I've been saying this for quite some time and no-one seems to notice: the dollar will strengthen as the euro collapses and that will implicate cheaper precious metal prices.

You will want to have lots of dollars then, when this happens. You will want to buy precious metals when they crash.
I see a potential crash of gold and silver, one that will happen around the time of the euro's crash.

But then again, there's another factor: will the masses in Europe turn to physical gold as the euro loses its value? If so, than the scenario described above won't happen... so, the precious metals could in fact get more expensive, if the masses losing their wealth in euros will turn to gold and silver (if they turn to gold and silver).

Some say the euro will crash, the dollar will crash and something new will come. Perhaps that new currency will be common currency in the Western World?
It's likely that it will be backed by gold. Even the IMF owns huge amounts of gold, so I don't see why not return to the gold standard...

A lot of people in Europe wish to return to their old currencies and abolish the whole EU. There is even a bloc of Members of European Parliament whose platform is in disbanding the EU entirely and encouraging a return to national boundaries with a regional free trade agreement.