Gold News from Morgan Gold

By James O'Dell

February 22, 2012, Los Angeles – Gold bullion prices rallied 1.41 percent or $24.50 to close at $1,759.30 an ounce on Tuesday, hitting a two week high after Greece secured approval from eurozone finance ministers for its second bailout package worth 130 billion euros ($171 billion). Silver jumped 2.21 percent or $0.74 to close at $34.27 an ounce, while the Gold/Silver ratio slipped to 51.34 as Silver outperformed Gold.

The recent surge in crude oil prices is threatening to cripple an already fragile U.S. economic recovery, experts warned on Tuesday. With crude oil accounting for 80 percent of the price of gasoline, pump prices are expected to soar this summer, with many areas already reporting prices over $4.00 per gallon. Increased global demand coupled with fears of possible supply disruptions are pushing prices higher, and sending astute investors to the safe-haven of physical Gold. "It doesn't bode well for the consumer," said Jeff Spring of the Automobile Club of Southern California, "By April or May, you might see some isolated instances where you're seeing $5" gas per gallon.

 In the eurozone, many of Greece's creditors are expected to participate in the debt restructuring deal, said Charles Dallara, managing director of the Institute of International Finance (IIF) and chief negotiator for private sector bondholders. The IIF negotiated a 53.5 percent reduction in the nominal value of investor holdings, allowing Greece to see a 107 billion euro reduction in its debt. "This is an unprecedented level of voluntary debt reduction," said Dallara.

While Dallara made it clear that individual investors must still accept the deal, he expects many to step up. "Despite a huge loss of value for investors, it holds a number of positive dimensions," Dallara said. "Losses will be substantial but they are contained." More importantly, says Dallara, the deal will give Greece "tremendous breathing space" in getting its economy back on track, and in allowing Greece to avert a disorderly default.

 Not everyone agrees."At the end of the day, considering how perfectly in place the pieces will need to fall for this bailout and said reforms to make the necessary changes to help revitalize the Greek economy, I do not believe that a Greek default is off the table," said Christopher Vecchio, currency analyst at DailyFX. 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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