Gold News from Morgan Gold

By James O'Dell

Los Angeles, CA. – Morgan Gold - The price of Gold eased a bit Wednesday morning but has since rallied on increased safe-haven buying and is currently trading at $1,778.30 an ounce with Silver closely tracking Gold at the moment and trading at $34.41 an ounce following a Fitch Ratings services downgrade of Greece's long-term ratings, reports that the eurozone economy is on the edge of a mild recession, with both the manufacturing and services sectors in decline, and escalating tensions in the Persian Gulf.

After the eurozone economy contracted 0.3 percent to end 2011, a second quarter of contraction in a row will mean the eurozone is technically in a recession. "The economy remains stuck in low gear," said Peter Dixon at Commerzbank. "It's indicative of a flatlining economy, maybe slightly contracting rather than a major slowdown. It doesn't bode well for the first quarter." The report put a damper on celebrations by investors following the latest Greek bailout deal.

Fitch Ratings agency added to the somber mood when it cut Greece's long-term ratings on Wednesday to just one level above default to, "C" from "CCC," after Greece announced the bond swap program that will drastically reduce its massive debt burden. Fitch said that when the bond swap was completed it would follow up with a further downgrade to "restricted default."

Meanwhile, tensions are rising in the Persian Gulf once again as the meeting between Iran and the International Atomic Energy Agency (IAEA) could have gone better. "Intensive efforts were made to reach agreement on a document facilitating the clarification of unresolved issues in connection with Iran's nuclear program, particularly those relating to possible military dimensions," read the IAEA statement on the visit. "Unfortunately, agreement was not reached on this document.”

Speculation of a disruption to oil supplies has increased along with the tension between Iran and the West, pushing crude prices higher, said David Greely of Goldman Sachs Group Inc., in a report on Wednesday. “The biggest driver of the market recently has been fear about Iran,” said Tom Bentz, of BNP Paribas Prime Brokerage Inc. “There’s anxiety about what the latest sanctions will mean and what retaliation will take place. All of this keeps prices inflated.” 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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