American Bullion -- Purchase Gold Coins As Currency Hedge

Thursday, June 03, 2010 at 05:44am

June 3, 2010 Los Angeles – The price of Gold turned slightly lower on Wednesday as the euro fell early against the dollar but gained 0.1 per cent by the end of the session. Investors are using small dips in the price of Gold as buying opportunities and are accumulating physical Gold for their portfolios at bargain prices.

European Central Bank board member Christian Noyer said the euro zone currency's exchange rate against the dollar was hovering around a 10 year average and it's not unusual for the currency to be at this level.

The Greek government announced plans Wednesday to privatize state owned companies in an effort to cut its budget deficit from a record of over 13 per cent of gross domestic product last year to 8 per cent in 2010.

This is just a small part of the 3 year austerity program Greece agreed to in exchange for the $135 billion bailout package.

Finance ministers from the world's biggest economies are meeting in South Korea this week and will be focused on shoring up the global economy now under pressure by the euro zone debt crisis. The meeting Friday and Saturday in Busan will be a precursor to the G20 summit happening in Toronto from June 26-27.

According to the results of Wednesday's South Korean midterm elections, North Korea's torpedoing of South Korea's warship, Cheonan, and the killing of 46 seamen, has weakened the political coattails of President Lee Myung-bak, South's pro-American president.

Candidates supporting President Lee Myung-bak won 40 per cent of the vote while the main opposition Democratic Party won 48 per cent. Analysts said the unexpected setback for the ruling party could lead to a South Korean leadership change.

Buying physical Gold allows investors to hedge against financial uncertainties thus protecting their wealth against erosion. Purchase Gold coins today.