INVESTORS SEEK SAFE HAVEN; GREECE’S DEBT-TO-GDP TO RISE TO 179.3%
Historically, Gold has been known to hold its value and is seen as a store of wealth. The view has not changed as central banks and individuals worldwide are investing in Gold to protect themselves for the unforeseen future. The Federal Reserve, European Central Bank and the Bank of Japan have decided to provide further stimulus measures to assist their economies with growth, but this has only pushed more investors to a safe haven asset such as Gold. Phillip Streible at future brokerage R.J. O’Brien said, “Gold held up because QE3 is attracting new investors into the market. People are exiting risk currencies such as the Australian dollar and looking for a safe haven in the gold market.”
Greece received some startling data from Monday’s 2013 budget plan: the economy is expected to shrink by 3.8 percent and the debt-to-GDP ratio will rise to 179.3 percent. Greece is currently in worse condition now than it was just six months ago. “It's an extremely ugly picture. The truth is, everyone knows Greece needs another debt restructuring but no one wants to acknowledge it right now because the contagion impact remains,” said an EU economic advisor responsible for coming up with solutions to the crisis.
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,779.10, Up $4.50.
- Silver, $34.64, Down $0.03.
- Platinum, $1688.40, Up $4.20.
- Palladium, $653.60, Down $1.60.
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