GOLD MOVES LOWER ON GREECE CONCERNS

February 10, 2012

Gold moved lower on Friday, led by a slide in the euro after a Greek party leader said he would not support the 130-billion euro bailout needed to avoid default. As of 8:40 Pacific Time, gold was trading at $1720.80 per ounce on the New York Spot Market, and silver was trading at $33.80 per ounce.

Greece is facing a sizable amount of bond redemptions in March and the country could default without a European rescue package. Greece’s bailout is contingent upon politically unpopular austerity measures that have been difficult to negotiate. "While indications are that the Greek parliament will approve these measures, there is enough uncertainty to keep markets on edge as we enter the weekend," Standard Bank metals analyst Marc Ground said in a note.

Some analysts believe that Greece could be forced to leave the euro zone system. "Gold will rise to $2,500/oz and commodities will plummet if the euro area starts to break up," Capital Economics wrote on Thursday yesterday.

"Greece may leave the system this year, followed by Portugal and Ireland in 2013," said Julian Jessop, chief global economist at the macroeconomic consultancy, told a conference in London on Wednesday.

Gold and silver will rise, he said. "It's almost certainly bad for all commodities, excluding gold and perhaps silver as a safe haven," Jessop said.

(Sources: "Gold falls 1 percent as Greek bailout worries hurt euro," Reuters, February 10, 2012; "Gold Sinks 1.5% on Greece Concerns," Wall Street Journal, February 10, 2012; "Gold Will Advance to $2,500 If Euro Zone Breaks Up - Capital Economics," Gold Seek, February 9, 2012)

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

Get Your FREE Investor Kit!
Learn how to acquire Gold and Silver
Complete the form below to receive your FREE kit:
Title:
First Name:
Last Name:
Phone:
Zip:
Please check this box to sign this form and confirm that Goldline may send its free investor kit to you and contact you using the phone number above.
Address:
 
City:
Country:
State:
Zip:
Please check this box to sign this form and confirm that Goldline may contact you using the email address above and send its free investor kit to you for free.
Your Investor Kit will include
  • An Introduction to Precious Metals
  • Advantages of Owning Gold and Silver
  • Popular Coins and Gold Products
  • How to Acquire Precious Metals and Rare Coins