London Gold Market Report by A Ash, BullionVault.com

"…Turn up the gloom! Investors will do well merely to preserve wealth from here…"

IT’S HARD TO BE BULLISH on gold when there’s so much bad news in the world.

Click for the full report. "…Turn up the gloom! Investors will do well merely to preserve wealth from here…"

IT’S HARD TO BE BULLISH on gold when there’s so much bad news in the world.

After all, Gold offers a refuge against bad times ahead. Like all good insurance, it’s best bought before trouble arrives – not during or after.

And just how much worse can the news get from here?

1. The Dow’s on tracks to close out its worst June since the Great Depression, down almost 10% for the month;
2. GM’s stock is trading at a 54-year low, taking it right back to when CEO Charles Wilson declared "what was good for the country was good for General Motors and vice versa";
3. US Dollars – the bedrock of world forex reserves – now buy one-third less against the rest of the world’s money compared with 2002;
4. The price of crude oil has risen more than five times over since US and UK troops liberated the oil fields of Iraq in 2003;
5. Libya is threatening to cut its oil production in protest at US anti-terrorism laws; Tehran just pulled $75bn worth of investments from Europe to avoid sanctions against Iran’s nuclear program;
6. Global inflation has risen from 3% last June to more than 5.2% per year today; analysts at Barclays Capital believe US inflation will hit 5.5% by August;
7. Real estate prices have turned sharply lower in the US (down 15% year-on-year), Ireland (down 13%) and the UK (down 3.6%) as well as in Spain, Australia, South Africa and the emerging economies of east-central Europe. Price in Riga, Latvia dumped 38% in the year to May;
8. Western consumer confidence has sunk to multi-year lows; emerging-market consumers face the worst rates of inflation in more than two decades, rising 25% year-on-year in Vietnam and more than 13% in India; surging fuel and food prices have sparked protests and riots in Asia and now unionized strikes across Europe.
9. Investment and lending banks are being forced to take back "securitized" debt onto their balance sheets, destroying their capital adequacy ratios and halting new lending as pension & insurance funds try to flee risk. In the UK alone, new lending fell 95% in May after allowing for such "de-securitization";

Watch out below! It’s every man for himself – women and children included! Or so the financial pundits now claim.

Click for the full report.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK's leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault ? where you can Buy Gold Today vaulted in Zurich on $3 spreads and 0.8% dealing fees.