Silver and Gold Stay Strong as Greek and Portuguese Debt Hammered

Posted: March 8, 2011 in debt, inflation
Tags: , ,

Any economic turmoil tends to be good news for the precious metals market, and the situation in Greece and Portugal is no exception.  From an article at Reuters:

While credit concerns over Portugal— measured by the yield premium above the rate on triple-A German debt — remain off their highest levels, the rise in bond yields across the euro zone has pushed Portugal’s outright borrowing costs to levels many see as unsustainable.

Analysts say peripheral spreads may widen further as markets await signals from EU leaders who meet this week to discuss solutions to the debt crisis.

Earlier, Greece sold 1.625 billion euros worth of Treasury bills at a slightly higher yield than at a previous auction in February, a day after Moody’s three-notch ratings downgrade, pushing it closer to a possible debt restructuring.

This information highlights that we could be seeing economic downfall in more countries than our own.  Restructuring of the debt in these countries could possibly lead to investors leaning on precious metals, as well as other hard assets, as a safe haven in the near future.


This material is for informational purposes only. Although it is obtained from sources believed to be reliable, Leland National Gold does not guarantee its accuracy, or being all-inclusive. Past performance is no guarantee of future results. There are risks in buying and selling physical metals. The potential for loss as well as gain increases by leveraging physical precious metals transactions. Never trade with more money than you can afford to lose, and always be sure to read the Risk Disclosure provided in your account documents. – Leland National Gold Exchange

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