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How can influence the so called ‘Grexit’in gold prices?
Greece became the epicenter of all attention during the elections of the past January and hasn’t stopped to be ever since. The previous government’s radical budget squeeze and the current debt have led politicians and economists in Greece as well as in the rest of the European Union wonder whether the cradle of democracy will remain in the euro zone any longer.
Even though the decision hasn’t been made, the European Central Bank already believe Greece can’t stand the pace under this situation, and is preparing a new currency for the country.
Its influence regarding the gold market, according to Capital Economics, is that the risk of leaving the euro zone would increase gold prices up to $1,400 per ounce at the end of 2015.
Some countries may think that Greece stopping using euro could be the solution thanks to which other countries would not suffer the consequences. Meanwhile other people foresee bigger events such as a stream of countries leaving the euro zone.
Nonetheless, according to Der Spiegel, German news, the rest of the countries that find themselves today in a quite similar situation to Greece, can hand tough and won’t exit. Still, this is just a theory.
In a recent interview with Varoufakis, Minister of Economy in Greece, he stated that this ‘Grexit’ could mean, besides politic tension, “an increase in rate interest, a bigger general crisis and hyperinflation in euro”.
And as every expert knows, hyperinflation has always involved the return to use of gold to guarantee the security of the capital when fiat money is devalued. Therefore if such scenario takes place, gold prices will receive a higher support than the already expected one and they could easily reach the levels prior to the recent crisis.
Gold is a valuable asset that protects wealth at any moment, and those who know it do not wait for any world scale event to happen to buy this precious metal. The clients of Emgoldex are among the people who are aware of its characteristics as a safe-.haven asset and buy it in the online store with the most profitable conditions.
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Category: Gold news Publication date: 2015-04-22 14:59
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