Germany-wants to make lawful that debts have to be backed by gold

The European crisis-precious metals investing

  • Gold: $1620
  • Silver: $28.9
  • Platinum: $1464
  • Palladium: $624

Hello to all. This has been a very interesting week. Europe, as always it seems, is in the spotlight. Over the weekend Spain announced a 125 billion euro ‘bailout’ of their banks. This sent stock markets soaring on Monday, for only about a few hours, as even the Spanish stock market closed down on the day after being up 6% at one point. This is yet another example of European leaders kicking the can down the road. The problems and bailouts in Europe have piled up like a big pile of stinking smelly $@%!. Markets recognize it, and gold recognizes it as it is comfortable back above the $1600 mark. To all that were able to buy the most recent dip in gold, kudos. As we had predicted the price dropped under $1600 presenting a very good buying opportunity for physical bullion purchases. Gold is back above $1600 and it appears $1600 may act as a new support price. This is a leg-up from the support we saw at $1550 through the month of may. There is some extremely telling news out of china that legendary precious metals investor Eric Sprott covers in a short piece a few days ago titled ‘Gold Alert’. He goes over recent Chinese physical precious metals purchases as well as other very important points about the world of physical gold. The link to that article can be found just below and I urge our readers to read over the report. (he really saved me a lot of research time this week with this) 

The most important thing to come out of Europe this past week was not the Spanish bailout. It was the announcement that Germany wants to make lawful that debts have to be backed by gold, and if unpaid, Germany can redeem the debts of its fellow euro members in physical gold. Italy in particular has $128 billion in Gold reserves which can be used to back new euro-area bonds. There is a fantastic article in the Globe and Mail in which the author explains simply what a rejection or acceptance of the policy really means for the future of gold and of the euro as a trusted currency. He goes on to say that backing the euro with gold would strengthen the euro, and I strongly agree! That article can be found here:

That is all for this week. As always feel free to call or email us with any questions, concerns, or if you are looking for more articles about precious metals bullion and precious metals investing.

All the best!