Global Partners Securities See Recent Moves by the Central Banks As a Net Positive for Gold

FOR IMMEDIATE RELEASE
New York, New York, United States of America (Free-Press-Release.com) December 1, 2011 -- Gold, the preferred safe-haven of a growing number of conservative investors, has risen again to a two week high after a coordinated push by the world's major banks to free up the credit markets in order to avoid the specter of a worldwide financial catastrophe imbued investors with the necessary confidence to convert a portion of their cash holdings.

The United States Federal Reserve, the European Central Bank and the central banks of England, Japan and Canada said they would lower the cost of dollar swap lines by 50 basis points from December 5, and oversee bilateral swaps in order to provide liquidity for other national currencies.

Gold rose 2 percent in November. This makes the seventh straight month that the metal has continued to rise. The correlation between gold and copper has reached 65 percent, a significant number for those wondering about gold’s long-term prospects.

Gold often goes up in an environment of rising price pressures because it protects investment portfolios from inflationary problems, as it rises along with other assets. Analysts have turned increasingly bullish on the long-term prospects of gold, even in the face of the challenges posed by a stronger dollar and increased investor optimism in dividend stocks.

One such analyst is William Beck, of New York’s Global Partners Securities, who released a note to clients stating that, "There is a significant impact on gold from the joint policy response from the Fed and other worldwide central banks. The downward pressure put on the dollar by these moves is almost surely a positive sign for gold’s immediate future. This move also frees up liquid currency, and in the current economic climate, it’s a safe bet, indeed, that a fare share of that money is going to be invested in gold. While it initially seemed that gold was trading at a level that couldn’t be sustained, this move by the Fed and the world’s other central banks makes gold’s mid-term future as promising as we’ve seen in a very long time”. He went on to reiterate Global Partner Securities previously bullish positions on platinum and copper, noting recent gains and confirming that both metals were continuing to trend upward.

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