It’s not all about Ukraine

Whilst there is no doubting the extra injection to gold and silver’s 2014 price rally this past week has been due to a flight to safe havens amidst the Ukrainian situation, it would be too simplistic to say that is the only reason.  Both metals were up substantially beforehand and this week also saw news of the US ‘correcting’ its annualised Q4 2013 economy growth down from its previous estimate of 3.2% to a soggy 2.4%, and US Fed chair last week saying they were “open to reconsidering” the tapering pace should the economy weaken.  These cracks in the supposed US recovery and the slowdown in China, Eurozone and other emerging markets are seeing demand beyond Crimea for safe haven assets.