This is a remarkable day for the DOW. There has been some heavy swings and a borderline collapse. This backs up the case to have Gold as a part of your investment portfolio. A safe haven to hedge against any dramatic falls in stocks should be part of any sensible investor’s portfolio.
If the current crisis in Greece spreads there is a summer of volatility ahead on both currency and stock markets. Think about Gold because there may be an opportunity to get a good deal during this current gold rally because of people selling to realize profits.
The current problems Greece is facing is having a huge impact on both currency and stock markets. The Euro is suffering along with European bank stocks. This is a time where the value of having Gold as part of your portfolio becomes really apparent.
If the crisis in Greece spreads to other European countries Gold will become an extremely valuable asset to have in your personal portfolio. It’s scary to think about it, but the Eurozone is currently in very bad shape. After Greece other countries such as Spain, Portugal and Ireland have the distinct potential to put enormous pressure on the currency.
Gold is a counterweight that you can use to safeguard your personal wealth against this scenario. It may be floating around all time highs right now but if European sovereign debt fears prove true it may go a lot higher. This particularly rings true for people in the Eurozone.
Gold Group’s John March lays out the chances of hyperinflation and that physical gold is a good way to protect against it. He predicts $1,500 – $1,600 gold by year end.
What if the purchasing power of the dollar falls dramatically? What if the relationship between gold and the USD re-calibrates to the ratio of 1980? Here is an interesting video that looks at this in detail. It’s actually quite scary but the points are well argued.
Gold climbed alongside the dollar after a deal was struck to help Greece. Also, the same concerns on Greece. Spain and Portugal which has seen the dollar increase against the euro by 5.1% this year are driving the gold price up. Read more in Business Week.
Gold futures are up as a result of growing concerns regarding the Eurozone and in particular Greece. In recent trading, April gold was up $16.40, or 1.5%, at $1,092.70 an ounce on the Comex division of the New York Mercantile Exchange. The contract reached as high as $1,095.90.
Some of the best analysts with solid track records are predicting $5,000 gold. This is based on the amount of new money created in the last couple of years in order to stimulate economic activity and prevent the banks from going under. The will have an effect on inflation, to what extent will determine where gold will go. This interview is worth checking out before you decide to buy gold.
