American Bullion -- Protect Your Wealth From Erosion

Tuesday, June 08, 2010 at 05:09am

June 8, 2010, Los Angeles – Gold bullion prices rallied as the euro dropped below $1.19 on Monday for the first time in more than four years, the euro recovered some losses by the close. The price of Gold continues to be supported despite a strong dollar due to the sovereign debt crisis in the euro zone.

“There’s a big acceleration in gold prices because people see future deterioration in the euro-zone,” said Adam Klopfenstein, Lind-Waldock senior market strategist. "The global tensions are at a pinnacle," said Mike Daly, gold specialist at PFGBest in Chicago.

"People are saying, 'We don't have any confidence in these fiat currencies, and we need to move our money into tangible, safer assets.'" Investors concerned with euro zone credit contagion are diversifying their investment holdings into Gold coins and bars.

Finance ministers from the debt-stricken 16 member euro zone completed arrangements for a Special Purpose Vehicle (SPV), a vast anti-contagion program that will raise $525 billion to loan to members struggling with Greek style debt repayment problems.

"There is no uncertainty left about the euro zone's capacity to provide conditional aid to countries in fiscal trouble," European Economic and Monetary Affairs Commissioner Olli Rehn told a news conference in Luxembourg.

"We are seeing gold as the ultimate currency because of all of these growing uncertainties surrounding sovereign debt in the euro zone, and the fact that there are very few attractive currencies out there," said Bill O'Neill, from LOGIC Advisors."It's a perfect storm for gold."

Federal Reserve Chairman Ben S. Bernanke said on Monday that the U.S. unemployment rate is likely to stay “high for a while,” and described the recovery as “moderate paced.” In Europe, he said, policy makers “are committed to avoiding default in Greece” and elsewhere.

As currency values continue to diminish, safe haven purchases of Gold bullion are increasing. Buy physical Gold and protect your wealth from erosion.