Contributing Editors' Blog Entries

Phoenix Capital Research's picture

 

True, Germany has promised more than this in the form of its supposed contributions to various EU bailout funds, largely due to the fact that German banks are exposed to the PIIGS and other problem countries of Europe. However, at the end of the day, when it's time for ink to meet paper, Germany is unlikely to pick up the tab for this.

 
GoldCore's picture

An increase in safe haven demand, particularly in periphery European nations such Spain and Italy will likely support gold. Citizens in these countries are alarmed by how depositors in Cyprus were treated and the more aware and prudent ones are taking the requisite action in order to protect their families and businesses from the growing possibility of capital controls.

Whether to sell Italy's national gold reserves is an interesting question. A perhaps as interesting question and more important question in the light of the Troika expropriation of bank deposits is will Italians begin to diversify some of their savings in Italian banks into gold bullion?

David Fry's picture

Well, that was a fun day, eh? Spills and thrills the whole day long.

Importantly, it’s the end of the quarter and performance bonuses are on the line. So any excuse to rally is built in to conditions.

 

GoldCore's picture

Importantly, Cypriots and other Eurozone citizens who own gold saw the value of their holdings rise 2% in euro terms.

The demise of gold and the "death of the gold bull market" is "greatly exaggerated" says Mr. O’Byrne.

He said that while the risk from Cyprus has abated, in the light of capital controls in EU country and the treatment of Cyprus, there are now huge question marks over the future of the European Union itself.