The price of gold and the Eurozone crisis

Things can’t be good for the New Zealand economy at the moment – in the recent ‘Zero Budget’ the government

announced they are going to start taxing children in an effort to gain more revenue ($14 million, to be exact).

If you yourself need to generate more revenue, selling your gold to EzyCash Gold Buyers is a great start.  EzyCash Gold Buyers in Panmure, Auckland buys unwanted gold, scrap gold, gold coins, gold bullion – any type of gold.  Just bring the gold into their store in Panmure,Aucklandfor a valuation of your gold and a top cash price for your gold.

We are going through tough times at the moment, but we have to remember that it could be worse – we could be in the Eurozone.

No less than 7 economies are in recession there, includingGreece, which faces threats of being tossed out of the Eurozone if it does not adhere to the austerity conditions of its previous bailout.

All this is causing economic havoc – the Euro currency is suffering and the effects of the debt crisis are being felt all around the world.

But what does this mean for gold and the price of gold?

For now, the price of gold has been tracking with the Euro, with the value of gold falling in-line with industrial commodities.

Physical demand for gold is still high from China and South-East Asian investors (including the government of the Philippines who bought 1 million ounces of gold in April), which is helping sustain the price of gold at current levels.  However the events inEuropeare having an effect with the price of gold now around $1500 per troy ounce.

Right now investors see US treasuries, the US dollar and German bonds as the safe haven, but if the Eurozone crisis worsens rapidly this could change.  Some analysts are predicting a bull run for gold in the near future, one of whom says his prediction of gold reaching $2000 per troy ounce in 2012 is not unrealistic.  With the Euro economy heading into previously unseen levels of instability, this may make gold look very, very appetizing indeed.  Even silver, which has recently taken a hit in its price, may benefit from investors fleeing Europe.

EzyCash Gold Buyers keeps a very close eye on the price of gold and the economic factors that affect the price of gold.  Bring your broken gold, unwanted gold jewellery or even gold rings from a previous relationship for a top cash price for your gold.