Gold News from Morgan Gold

By James O'Dell

Los Angeles, CA. – Morgan Gold - Gold and Silver bullion prices surged Tuesday morning on the news of a Greek bailout agreement with Gold currently trading at $1,755.80 an ounce and Silver trading at $34.31 an ounce. The long awaited 130 billion euro second Greek bailout agreement came in the wee hours after a day of arm twisting private sector bondholders into accepting deeper losses than they had already accepted just last month.

Eurogroup Chairman Jean-Claude Juncker, and International Monetary Fund (IMF) managing director Christine Lagarde, warned that Greece still has several “prior actions” to implement by the end of February before eurozone governments or the IMF can sign off completely on the new loan program. During negotiations, analysts for the troika of lenders, the IMF, the European Central Bank (ECB) and the European Union (EU), concluded that in a worse-case scenario, Greek’s debt load could hit 160 percent of GDP by 2020.

“This is likely especially bullish for Gold traders,” optionsXpress says. “Not only does the bailout perhaps delay the inevitable (Greek bankruptcy), but it also opens the door for higher inflation across the eurozone.” Gold and oil prices are higher after approval of the bailout, said precious metals strategist George Gero, and this is inflationary. “So if you drive, if you eat, if you wear clothes, you will see higher prices….And since (U.S.) interest rates are due to stay low for the next couple of years (based on the last FOMC statement), it will be very difficult to fight inflation quickly.”

The latest bailout accord comes with the harshest of terms, including the presence of a permanent team of European Commission monitors stationed in Greece 24/7 to ensure the implementation of the new round of reforms tied to the deal. Greece agreed to transfer its debt servicing payments into a blocked escrow account that will always contain at least three months of debt payments.

 Greece is also on the hook to enact legislation that will give debt service priority over budgetary spending "over the next two months" with the promise to amend that principle to its Constitution "as soon as possible", said Chairman Juncker. Don't leave your assets unprotected during these times of economic and geopolitical uncertainty, invest in physical Gold and Silver bullion and protect your wealth in 2012.

Widely recognized Gold and Silver bullion coins and bars can be bought and sold quite readily at Morgan Gold and they can be easily stored in a safe-deposit box if needed. Did you know you can add physical Gold to your IRA?  Hear Edmund C. Moy, former director of the U.S. Mint, now representing Morgan Gold, speak on Gold and your retirement. Call 1.800.585.1773 and let our team at Morgan Gold help you diversify your portfolio today. Ask about our new Self Directed IRA. 

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