Find Out Why Problems In The Eurozone Are Driving Gold Coin Prices Directly At Gold-Coin.com
February 15, 2010 – Gold coin prices continue to be favorably affected today by problems in the Eurozone as EU leaders have been unable to lay out a specific plan for assistance to the struggling countries in the Union: namely, Portugal, Italy, Greece and Spain. As leaders demand that Greece implement deficit-reducing measures in advance of any bailout, analysts caution that this won’t solve every problem.
“Southern European countries are trapped in an overvalued currency and suffocated by low competitiveness, a situation that will lead to the break-up of the euro bloc,” according to Societe Generale SA strategist Albert Edwards. Edwards goes on to opine that, “The problem for countries including Portugal, Spain and Greece is that years of inappropriately low interest rates resulted in overheating and rapid inflation.”
The euro has not reacted well to this news, falling close to its nine-month low and losing about 10% to the dollar in the past two months. Gold continued its gains as well, closing near $1,100.00 per ounce.
GoldEssential.com analysts noted that “developments over the last 24 hours have been encouraging. Correlation studies showed a decoupling between gold and the U.S. dollar on Thursday as gold rallied on technical buy-through and strong equity markets, while the U.S. dollar gained on better than expected data, like in the good old days”
The problems with the EU and the euro have been helpful in driving gold coin prices higher. As gold prices absorb these gains, it is very possible that the move will continue upward. Investors should look to increase their holdings before any additional price increases occur.
Michael Williams
Senior Staff Writer - Gold-Coin.com
