Tuesday, July 12, 2011

Italy's Debt Woes Cause Gold to Increase

Sometimes you just cannot get a break.

This must be how the Eurocrats are feeling. After sorting out the long-winded affair of Ireland's debt, then Greece's debt last week, they are being hit on the proverbial head by a 4 x 2 once again.

Italy, though, is even worse, and could cause a huge drop in confidence in the euro. Already we have seen the price of gold rise US$65.00 per ounce since 1 July.

In fact it appears that gold is separating itself from silver a little as gold's safe-haven ability comes more into focus because of the continuing Euro crisis.

Here is an article from RT.com describing Italy's situation including its massive debt problem of 1.88 trillion euros.

Trouble is brewing for Italy, as it edges closer to becoming the fourth European country to need a bailout. The country’s debt totals 1.88 trillion euros and is continuing to rise. 
Italy’s debt is surging past earnings, raising fears over whether Italian banks can pass EU stress tests, and that is forcing up borrowing costs. 
Senior EU officials gathered on Monday in Brussels to discuss a new anti-crisis program and debate how to prevent the debt crisis spreading to Italy. But since Italy is one of the bigger players, saving it will not come cheap...more 

Gold in New Zealand dollars: $1891.82 per oz
Previous all time high: $1955.10 per oz

Silver in New Zealand dollars: $43.55 per oz
Previous all time high: $48.58
per oz

The Anglo-Far East Company
The Original Private Bullion Custodian
Your reference: an-001

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