House Freedom Caucus Gets Its Revenge for Debt Deal
Karine Jean-Pierre Ends White House Briefing After Question About Biden's Falls
Colorado Is Home to Probably the Most Unconstitutional Anti-Gun Push in Years
There Are New Details About the Plane Crash That Triggered a Military Response...
Trump Pollster Doesn't Have Great News for Trump
Video From FL's Migrant Flight to CA Pokes Holes in 'Kidnapping' Claims
Why One Democrat Says the Biden Admin Has Done a Good Job Preventing...
Gun Control Activists Finally Admit What the Movement Really Wants
Shark Tank Star Explains How Target Saga Will Lead to a 'Complete Change'...
To Ronna, No Plan Is the Plan
Teachers Are Divided on Whether Arming Themselves Would Make Schools Safer: Poll
Human Rights Campaign Goes Even Further With Its New 'State of Emergency'
The Choice: Criminals Behind Bars or Laundry Detergent Behind Glass
MN School District Hosted ‘Gender Resource Fair’ Knowing It Would Cause Backlash, Document...
Annual LGBT Celebration at Disney World Helps Debunk 'Don't Say Gay' Lies About...

Gold Finds Support

The opinions expressed by columnists are their own and do not necessarily represent the views of

It was a wild ride but it looks like the euro and gold have found some price footing after recent losses. 

Gold was up $4.21 to $1,562.56 and silver up $0.25 to $28.45, leaving the silver/gold ratio right at 54.9.  Platinum and palladium were also up, with copper and crude oil flat to lower. 

The bleeding hasn’t completely stopped for the European stock market with the FTSE down another 0.19 percent, though the STOXX 50 and DAX both showed small gains on the day.  In Asia the Nekkei posted another drop, leaving the index down on the month. 

Anti-austerity party officials in Greece rejected a plan to allow an appointed group of technocrats manage the finances until the elections were settled. Believing they can make further gains in another round of elections, the opposition is in no mood to cut deals. 

Either way, Greece was supposed to make a 436 million euro payment today to the bondholders who rejected the voluntary accord.  Paying the notes in full would anger the investors who took the deal; not paying would count as a default leaving Greece to choose between two equally bad options. 

What effect all this will have on gold prices is difficult to say.  I believe at this point the dash for cash should be running out of steam.  We have basically rolled gold prices back to the summer of 2011.  Last year gold showed pretty solid support at these levels and there’s no reason to think support won’t materialize here once again. 

Where it all could go out the window is if the European Union starts to unravel, but even that is a two-edged sword for gold.  The short-term cash conversion panic would be balanced out by a flight to safety, which would certainly include precious metals.

No matter how it turns out it’s going to be the most fascinating economic period we’ve seen in a long time.  If you have some free cash at your disposal it’s a rare opportunity to accumulate gold and silver at fire sale prices. 

With the volatility that’s almost certain to follow, this may be a time of very rapid profits in metals.  While you shouldn’t be buying precious metals as a short-term investment, it’s always nice to be in the money by the time your shipment arrives. 

Chris Poindexter, Senior Writer, National Gold Group, Inc

Join the conversation as a VIP Member


Trending on Townhall Video