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News & ResearchLooks Like We Got Here Just in The Nick of Time

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So the FTSE100 Index is down 5.60% this year (I'm writing at 7pm on Sunday 3 June), whilst European woe has taken the Eurostoxx50 Index* down a more miserable 10.70%. If anybody out there knows this to be the full and final extent of the downward slide in equity markets in 2012, then do please let me know … but my Google search for "is the European debt crisis over?" showing results submitted to the world wide web in the last 24 hours - and this on a Sunday night, remember - has yielded plenty of pages of opinion that suggests otherwise... 'I'm just sayin'.

To tell the truth, precious metals have fared little better in 2012 - please find below a chart created using London Bullion Market Association and London Platinum & Palladium Market price data (US Dollar PM fix prices rebased to 100 at 3-Jan-12 for all four metals FYI)

 Graph Jan - May 2012 - 4 Metals

...although the gold market did appear to have a moment of clarity on Friday: by my maths (horribly bad for a man with my CV) this represents, nearly, a 4.25% intra-day rally.

24hr Gold - 1 June 2012

To be honest, I cannot quite believe our luck.

We have been working to bring Guernsey Mint Refined to you since the new year. My greatest fear during this time was that world equity markets would sell off aggressively, that fiat currencies, most obviously the euro, would become unsustainable as investment opportunities and that precious metals would be bought up by all and sundry.

I have, quite literally, had nightmares about opening our doors to a muted fanfare with the grim realisation that gold was trading at $2,000 an ounce and that everyone had already made alternative (inferior?!) efforts to build a complete precious metals portfolio already...

* The EURO STOXX 50 (Price) Index is a free-float market capitalization-weighted index of 50 European blue-chip stocks from those countries participating in the EMU. Each component's weight is capped at 10% of the index's total free float market capitalization. The index was developed with a base value of 1000 as of December 31, 1991.

Sunday June 3, 2012 by Robin Newbould