EUROZONE WORRIES PUSH INVESTORS TO HARD ASSETS SUCH AS GOLD
Concerns lingered throughout the day after the eurozone’s agreement to bailout Cyprus for an estimated $10 billion euros and a requirement for the country’s savers to forfeit up to 10 percent of their deposits. The bailout provided gains to both the U.S dollar and to Gold as investors sought a safe haven asset. “If you have deposits in Spain and Italy, you have to really be considering that those deposits aren't going to be safe for too much longer,” said Jeffrey Sica, chief investment officer of Sica Wealth Management. “Even mere mention of deposits being fair game will lead people not only to withdraw money out of their bank accounts, but lead them towards hard assets like Gold.”
The euro dropped to a three-month low against the U.S. dollar and other foreign currencies as the Cyprus bailout jolted financial markets this morning. “There is a very real possibility of a run on the banks, people are lined up at the ATMs as we speak; I cannot believe that they (European officials) didn't see this coming,” said Sean Cotton, vice president and foreign exchange adviser at Bank of the West in San Ramon, Calif. “The question is, could this happen to other countries? I am by no means an ‘oracle,’ but right now, I am diligently searching for any and all companies that produce mason jars and or mattresses; I have a feeling they are going to make a killing.”
At 5:00 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,607.10, Up $12.00.
- Silver, $28.93, Up $0.01.
- Platinum, $1,580.80, Down $13.60.
- Palladium, $763.20, Down $11.40.
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