Stark steps down from European Central Bank

The European Central Bank on Friday said Juergen Stark, a member of the Executive Board and the Governing Council, will step down, leaving his post by the end of the year for "personal reasons." 




Earlier Friday, news reports said Stark would step down due to disagreements over the ECB's bond-buying program. Stark was reportedly opposed to the reactiviation of bond purchases through the ECB's Securities Market Program last month. In a news release, the ECB said Stark would remain in his current position until a successor is appointed, which would be by the end of the year. 



Stark's term was set to expire in May 2014. ECB President Jean-Claude Trichet thanked Stark "wholeheartedly for his outstanding contribution to European unity over many years," the ECB said. 




News of Stark's resignation put added pressure on the euro and European and U.S. equities, analysts said. 

Soaring Gold Prices

Gold has been a valuable and highly-sought after metal since long before the beginning of recorded history. This is no exception even till today, especially during this troubling period as many are concerned about whether we will enter into yet another global economic downturn.

In the following months, gold prices are likely to soar higher as investors continue to dash towards the metal for safety. Whether it’s the uncertain growth in the United States, volatile financial market or the Europe debt crisis, all these factors fuel and support the growth of the gold’s strength in today’s market.

Besides the above mentioned issues, there is another key reason to get into the gold business. “There’s this general fear of currencies losing value at a rapid clip and you are going to see gold as a beneficiary of a lot of money going into tangible assets,” said Scott Meyers, a senior trading analyst with Pioneer Futures in New York.

And this is a harsh reality as we made reference to Japan’s draconian measures to tamper down the yen and the Swiss National Bank’s recent move to decrease the value of the franc. Given that investors have nowhere to hide these days, we are seeing gold becoming increasingly credible as a safe-haven.