Eurozone Debt Crisis Deepens Sending Euro Lower And Gold To New Record At EUR 1,080/oz

Tyler Durden's picture

From GoldCore

Eurozone Debt Crisis Deepens Sending Euro Lower and Gold to New Record at EUR 1,080/oz

The euro, global equities and bonds in peripheral Eurozone countries
are all lower this morning on heightened concerns about the debt
crisis in the Eurozone. The euro has fallen against all currencies and
is now at a record low against gold at EUR 1,080.21/oz. Silver is lower
against most currencies but is higher against the Australian dollar and
the euro ( EUR 24.80/oz). 

Cross Currency Rates

Greece’s 10 year government debt has surged to 16.98%, Portugal’s to
9.6% and Ireland’s to a new record at 10.76%. The yield on Italian
10-year government debt is up 9bp to 4.85% after S&P cuts its
rating outlook on Italy’s sovereign debt to “negative” from “stable”.
The Spanish 10 year bond has risen 11 basis points to 5.57%.

Equity markets in Europe have followed their Asian counterparts
lower. Asian equities fell due to Eurozone debt concerns but also
inflation concerns and the risk that the US economic recovery is
faltering. Italy’s stock market (FTSE MIB) is down 3% while Spain’s
IBEX is down 1.7%.

Gold in Euros – 30 Day (Tick)

Besides sovereign debt risk, gold is also being supported by
geopolitical risk as seen in the increasingly unstable nuclear armed
Pakistan where armed militants attempted to take over Pakistan’s naval
air force headquarters.

There is increasing tension between the U.S. and Pakistan after what
the U.S regards as Pakistan’s failure or collusion regarding Osama Bin

China has increasing economic and military ties and interests in
Pakistan and has vowed to standby Pakistan and has called on the world
to respect Pakistan’s sovereignty.

Separately, in an interview with the Financial Times on Saturday,
Henry Kissinger has warned of a world war involving Pakistan and India.

Gold in Euros – 1 Year (Daily)

The eruption of Iceland’s Grimsvotn volcano is leading to concerns
about the economic impacts on the aviation industry and wider impacts
on consumer confidence on an already fragile European economy.


Demand for silver bullion in China remains robust with Chinese
silver imports in April at 339.4 metric tonnes, according to data
released by the Chinese customs agency today.

This compares to 302.09 metric tonnes in April 2010 or an increase of
over 12% from the same month last year. It compares with silver
imports of just 132.5 and 127.3 metric tonnes in April 2009 and April
2008 respectively.

This shows that the record Chinese demand for silver bullion seen in
2010 is continuing in 2011 and higher silver prices are not deterring
Chinese buyers.

China imported 3475.4 tonnes of silver bullion in 2010 up a massive
fourfold from 2009 when imports were just 876.8 tonnes. Importantly,
China was a net exporter of silver bullion up until 2007.


Gold is trading at $1,508.80/oz, €1,078.64/oz and £935.81oz.


Silver is trading at $34.64/oz, €24.76/oz and £21.48/oz

Platinum Group Metals

Platinum is trading at $1,747oz, palladium at $720/oz and rhodium at $1875/oz.


(Reuters)--Gold rises to near two-week top on euro zone debt woes

(Bloomberg)--Gold May Advance as European Debt Concern Boosts Demand for Haven Assets

(Associated Press)--Gold, silver coins to be legal currency in Utah

(Bloomberg)--Shanghai Gold Exchange Planning to Start ETFs, Chairman Wang Zhe Says


Chinese inflation helps gold to shine brightly

Angus Murray: Believer in gold and real assets

Robbery? But the cash is still in the bank...

Things That Make You Go Hmmm.... Such As The CFTC's "Endless" Investigation Of Silver Manipulation

Should America Sell Its Gold? 

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blindfaith's picture

As for Greece, you can't pay off 16% interest when your back is against the wall with 50% of the under 30 unemployed....the IMF way of doing things.

I still think there is something yet to be seen from the governments of the world when it comes to PM ownership.  Without fiat currency, governments can not equate each others currency by juggling numbers.  Real, I mean real wealth backed currencies are an invitation for war from the have nots.

Mountainview's picture

In a chess game Greece would give up at this point. The rest is only a useless endgame with a defined outcome.

Reschedule your debt- exit the EURO and start the next party... Greece zero--the bankers zero as well...

Derpin USA's picture

The world waits with baited breath for the Blackest Swan. What will her swoop look like?

weinerdog43's picture

I'm sorry, but this drives me nuts.  It's 'bated breath' not 'baited breath'. 


Bated is a contraction of abate.  Bait is something you use to go fishing. 

This concludes today's English lesson.  Please carry on.

Derpin USA's picture

No, you don't understand. I've chewed a bunch of flies to bait my breath for the Blackest Swan.

john39's picture

Kissenger? Should be on the short list for the gallows

cossack55's picture

Agreed. Why is it these barberous relics refuse to freakin' die. I mean:




Bush Sr.


ad freakin' infinitum

They just won't go away.

Re-Discovery's picture




Entire Chinese Leadership



Kim Il Jong

Ayatollah Khameni

Queen Elizabeth



Caviar Emptor's picture


Jack Welsh

Both always get exhumed when the market is down to appear on CNBS and say "THis is the greatest country going through the greatest time and if you say different we're comin to get ya"

Long-John-Silver's picture

Buys stock in major Guillotine manufacturer. All other forms of elite elimination devices are too slow and expensive.

This video details how fast and easy they operate.



goldfish1's picture

Why do I resist seeing Carter in that group. Must be the idealism from my youth.

oogs66's picture

Markets have sold off nicely overnight, but it still seems like all the smart money is looking to buy since neither the ECB nor the FED have failed to support the market on any hiccup in the last 12 months.  Eventually the dynamic duo will run out of power to prop up the market, but doesn't seem like anyone believes that time has come yet

Jim in MN's picture

What, that's all ya got?

The Black Swan Lingerie Wrestling Network, AKA Zero Hedge, demands more, badder and blacker swans!!!

cossack55's picture

You bet. I'm talking Black Freaking Hole kind of black. A swan so black light cannot escape. EQ's, Volcanos, Tornados, Nuke Meltdowns, Dead Gulf, Dead Constitution, Empty-suit politicos, all a bunch of gray swans.

Caviar Emptor's picture

Don't forget failed Rapture

chubbar's picture

You can bet that Kissinger is busy planning the aforementioned world war. He's an evil bastard.

wombats's picture

The Black Swan will be Timmy and Benny announcing QEx to bail out Greece since the EC can't/won't.  

I am more equal than others's picture

No, the black swan is when Timmy announces that he is pregnant with Benny's love child and that asshole conceived progeny is the 'Anti-Christ' ... then, and only then, will the black swan appear. 


There is a picture of Timmy and Benny together at the White Party in Palm Springs floating around the internet.  Harold Camping announced that the pregnancy is near..... June 21, 2011 at 6pm.

GeneMarchbanks's picture

This looks like May 2010... only worse

Caviar Emptor's picture

Yup. Much darker. Flash crash was only a black duck

Herne the Hunter's picture

Totally unrelated, here are some DSK rumors from Holland:

DSK's sperm found on hotel maid's clothes

the not so mighty maximiza's picture

I don't know if it is these nicotine patches I am taking but I have that "falling off a cliff" feeling.  Something bad is going to happen.

zen0's picture

There was an explosion at a Chinese iPad factory....maybe that's it. Also, stop doing the patches, those things can kill ya.

Derpin USA's picture

iPad disruption? What the fuck are we gonna eat?

goldfish1's picture

Smoke the naturally grown tobacco instead. Did you know that studies show the fertilizer they grow the tobacco in is what causes the lung cancer?

Smiddywesson's picture

Something bad always happens.  That was one of the points made in Taleb's book.

Society is huge, extremely complicated, and interconnected.  The cost's of efficiency are that anything can make the machine break down.

Unfortunately, this is occuring during a fourth turning, a time characterized by crashing markets, trade wars, and then real wars.  This is going to be a big one.


Caviar Emptor's picture

This time around faith in the dollar is very muted. Nobody trusts these governments not to default or devalue, even the US.  Gold and other "safer" currencies are being viewed as flight to safety. This time around gold is also benefiting from the feeling that "there's safety in numbers" as global demand for physical has skyrocketed recently. Gold is more widely held, and being opportunistically sought by governments, banks and wealthy at any opportunity. 

zoomer's picture

China ...has vowed to standby Pakistan and has called on the world to respect Pakistan’s sovereignty."

Yeah, like Tibet!

oogs66's picture

Yeah, like we don't pick and choose which dictators to impose 'no fly zones' on, and which we happily help keep in power.  China will do what is right for China and don't care what we say.  Espepcially since most of what we say is just lies.

trav7777's picture

Shanghai Gold ETF? there anyone sane who would invest in this?

falak pema's picture

All those who invest in WS and Crimex should be grateful. Now there are two places to get spiked deep.Its a masochist's world.

Snidley Whipsnae's picture

Interesting comments from Chris Martensos blog in an interview with Rubino.


Caviar Emptor's picture

Ben, can you spare a trillion or five? 

Mr.Kowalski's picture

I have full faith in Mssr.Juncker's connection with the Almighty and their ability to overcome the basics of mathematics on his way to Sainthood. Dare any of you heathens doubt his Saintly powers ? As for me, I believe. {PS-- I was raptured last Saturday and am typing on a public library keyboard from Heaven}

Eric Cartman's picture

Why is gold priced in Euros? 

Long-John-Silver's picture

Europeans use them to buy Gold (and Silver).


Biggest problem - if the shit hits the fan, no market, no internet, no fricking ZERO HEDGE to keep me feeling real in a world of what? I don't think we wanna go there - way too much video game gorefest reality if systems collapse in urban environments. No system of government can function for long without honesty and integrity.  There is none showing in the halls of power, and I don't mean our National Enquirer political circus for the masses. Real power is financial power - the psychotics of the world are currently in charge. Until some Seal Team takes them out in the interest of the survival of humanity, we are all well and truly fucked. All the silver, canned goods, buckets of grain, and firearms are just going to buy you a bit more really bad years of existence. The Depression was nothing. This will be like the Dark Ages. Like Monday morning with MRE's and a shotgun on top of the worst hangover you ever had - that just won't go away. Yep, feeling pretty cheerful this morning! 

dcb's picture

I am certain the greek people would like to default or reschedule. but the leaders who do won't be able to monetize their time in office with speaking fees to the big banks, or cushy appointments in the future. you are aking the leaders to bite the hands that feed them.