Markets around the world reflected worry over the Greek financial crisis.
Posted by Adam King on October 03, 2011
Don’t Be Shipwrecked By Greece, Buy Gold
October 3, 2011 – Markets around the world reflected worry over the Greek financial crisis. Overnight, the Hang Seng Index was down 4.4%. The Shanghai and the Nikkei Indices were also down. In the US, stocks were down more than 1% during intraday trading.
What’s the cause for worry? On Sunday, Greece released via the Associated Press that it would not be able to meet its budget reduction targets that it set out just a few months ago. This reflects negatively on the entire rescue package and, pending further developments, may signal that the actions already taken to keep the Mediterranean country solvent are not enough.
The resultant action in the markets signals how much investors are worried. The Euro lost ground in currency markets, falling to an 8½ month low against the dollar. Even Brent crude was down to $101 on worries over the Greek debt crisis.
Uncertainty overseas has revealed a strong faith and trust in gold. Following the recent correction in the gold market, the price is unusually good to get in and increasingly people are getting in. However, the current positive gains are steady, smooth, and even, reflecting the desire of investors all over the world to put their money where it will be safe in the uncertainty of the Greek situation.
Precious metals gained Monday amid the uncertainty and turmoil in other markets, with gold up by over $30 in intraday trading. In the unsafe environments that markets are now reflecting, there is a continued, steady shift into gold because it is a safe haven asset from the storm in the Mediterranean.
Senior Staff Writer – Certified Gold Exchange
US Gold Market