Posts Tagged ‘Portugal’

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.

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